The construction of a new railway from Erdenet to the Ovoot mining complex is expected to start next year. The issue was discussed during a meeting between J.Bat-Erdene, Minister of Road and Transport Development with representatives of ‘Northern Railways’ LLC, which is  the project contractor.

The project construction costs USD 1.25 billion for building the 542 km long railway from Erdenet city in Orkhon aimag to the Ovoot mine of Khuvsgul aimag. Located in the north of Mongolia, the Ovoot mine has rich deposits of coking coal.  The railway is considered as one of the biggest construction works of its kind in the transport sector in Mongolia.  ‘Northern Railways’ LLC will tackle funding collaboratively with the China Gezhouba Group Corporation (CGGC).

The railway will be connected with Russia and China, and become a part of an economic corridor connecting Asia and Europe. The contractors have asked Minister Bat-Erdene to carefully define the route to provide the link-ups with the Russian and Chinese rail networks.