Coal hopeful Aspire Mining saw a near 13% increase in its share price on Wednesday after the company signed a memorandum of understanding (MoU) for future coal supply.

The ASX-listed junior told shareholders that it had signed a nonbinding MoU with Sainshand Industrial Complex, which was developing the largest industrial park in Mongolia, to potentially provide coking coal from the Ovoot project.

Aspire noted that this was an important step for the Ovoot project, and recognised the project as a key supplier to the industrial park.

In order to supply the Sainshand Park with Ovoot coal, the Erdenet to Ovoot railway connecting to the Trans-Mongolian railway would need to be completed.

Aspire said that its Mongolian rail infrastructure subsidiary had applied to the Mongolian government for a rail concession over this area, adding that government approval would be required before the rail project could proceed.

The $144-million Ovoot project would have an initial production of five-million tonnes a year, with first production targeted for 2017, to coincide with the commissioning of the railway.

Aspire shares were trading at a high of A$0.037 a share on Wednesday.