Mongolia opens new rail route for coking coal - News.MN

Mongolia opens new rail route for coking coal

Old News! Published on: 2022.10.04

Mongolia opens new rail route for coking coal

Mongolian coal companies are frustrated over the inability to move more coal into the soaring market. Therefore, a completion of Erdenes-Tavantolgoi (ETT) Tavantolgoi-Gashuunsukhait Railway was hailed. The project got together more than 600 enterprises and 5,000 workers.

The railway benefits from an absence of restrictions on transportation and border crossings, reducing costs fourfold. It provides annual capacity for an impressive 30-50 million tons of freight, specifically the shipment of coal to neighbouring China. While it is expected to generate a net profit of USD 147.7 million, off an annual revenue of USD 268.9 million, the railway has also created about 2000 permanent jobs, a significant long-term investment in the local economy which will improve quality of life for thousands of people.

The project was first started a decade ago, but almost immediately placed on hold by the Mongolian government in 2013 due to financial concerns and mismanagement issues. Re-initiated in March 2020 with the creation of Tavantolgoi Railway LLC under Government Resolution No. 242, the project was revitalised with Erdenestavan Tolgoi JSC responsible for investment and financing.

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