Cabinet to accelerate construction of Tavan Tolgoi-Gashuun Sukhait railway

On August 8, Cabinet made several decisions to speed up the construction of the 267-kilometer railway between Tavan Tolgoi coal mine and Gashuun Sukhait border checkpoint.

Cabinet ministers decided to establish Tavan Tolgoi Railway state-owned company with 51 percent or more state ownership.

The company was given a five-year license to construct embankment and ground works of the railway.

Cabinet also allowed the board of Erdenes Tavan Tolgoi JSC to fund required financings to restart some delayed construction works by establishing a pre sale contract for purchase of Tavan Tolgoi coal.

The prime minister instructed some ministers in charge of the project to study about foreign companies with capacities to pay advance payment, manage port utilization and conduct transit transportation that are interested in collaborating with Mongolia on this project, and a task force made up of these ministers was formed to report on its performance within this year.

The government believes that after the railway is built, the country will be able to export up to 30 million tons of coal a year. It will also reduce the railway transportation cost of Erdenes Tavan Tolgoi JSC by approximately eight USD per ton, ensuring four-fold cheaper transportation to China and the third market, compared to road transportation.

The railway will also increase workplaces and reduce environment and pasture deterioration and soil and air pollution.