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Joint venture to construct Sino-Mongolian railway

World Coal,

Chinese state-owned mining group Shenhua, which operates 1765 km of coal railway in China, has signed a joint venture agreement to develop a cross-border rail link to serve the Tavan Tolgoi coalfield in the South Gobi region of Mongolia.

Mongolian firms

Under an agreement signed in Ulaanbaatar on 7 April 2014, Shenhua will hold a 49% interest in a joint venture being formed to progress the project. A consortium of Mongolian firms, including Erdenes Tavan Tolgoi, Energy Resources LLC and Tavan Tolgoi, will hold the remaining 51% stake.

Gashuunsukhait Railway Company will invest in the construction of a railway project at the Sino-Mongolian border crossing, which will be a standard gauge (1435 mm) cross-boundary cargo transportation railway with approximately 20 km in length connecting the Gashuunsukhait boundary control point in Mongolia and the Ganqimaodu boundary control point in China.

Reduce transport costs

The construction of the Sino-Mongolian Border Crossing Railway will help reducing transportation costs and promoting Sino-Mongolian coal trading.

Shenhua Baoshen Railway Company Limited, a Shenhua subsidiary, will be responsible for the operation, transportation and maintenance of the Sino-Mongolian border crossing railway in accordance with the operation and maintenance contract.

Edited from various sources by Katie Woodward

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