Government of Mongolia issued a decision on March 21st regular cabinet meeting to establish a joint venture of associated entities Gashuunsukhait railway company that is designed to build a narrow gauge railway between Gashuunsukhait port in Mongolia and Gantsmod port in China for coal shipping use in the scope of policy to increase coal export, improve balance of trade.

The Government decision is effective on April 7th as Erdenes-Tavantolgoi JSC, Energy Resource LLC and Tavantolgoi SC representing Mongolian side, and Chinese Shenhua Group LLC signed joint venture agreement of Gashuunsukhait railway company.
According to the Government`s decision, Mongolian national three companies shall own 51 stake of JV Gashuunsukhait railway company and Shenhua holds remaining 49 percent to invest for their shares.

Both sides hope that establishing a narrow gauge railway between Gashuunsukhait-Gantsmod would make coal export stages easier and cost cheapier bringing competitiveness for Mongolia`s coal that would coal export boost.
Mongolia has built over 1000 km long railway and now plans to build over 20 km narrow gauge railway between Gashuunsukhait-Gantsmod this year.

At the joint venture agreement signing ceremony for establishment of Gashuunsukhait railway company, Minister of Mining D.Gankhuyag, State Secretary for Minister of Mining, and Ministry of Roads and Transportation and Ambassadors of China to Mongolia and officials were attended.