Parliament’s approval last
week of the Government policy to build a rail line linking with Russia to help
tap large coal deposits in the south is the latest move in the long-delayed
project that could make the poor but mineral-rich nation less dependent on
exporting to China. The vote was nearly unanimous in favor of building the line
and making it broad gauge, referring to the distance between the rails, so it
could link up with Russia”s rail network. There were concerns that if the rail
were standard gauge like China”s rail system, too much of the commodity would
end up flowing to coal-hungry China at bargain prices. China currently takes
about two thirds of Mongolia”s exports.

The deposits are located only about
200 km from the Chinese border but Transportation Minister Kh.Battulga said
Mongolia would rather sell processed coal to Japan and South Korea. “The
policy will greatly boost the economic development of Mongolia. Instead of
shipping raw materials directly to one market, jobs and value-added production
will be created in Mongolia,” he said.

The country will invite international
bidding for the railway”s construction, which is expected to be completed in
two years.