Railway construction work will be continued in Tavan tolgoi-Gashuun sukhait direction
L.Oyun-Erdene who is Mongolian ministry and chief of Parliament Secretariat, worked in accordance with an official appointment in Umnu-Gobi and Dundgobi provinces on 9-11th of August 2019 with governmental members.
During this period of time members of working group held a meeting with workers of Tavantolgoi Roalway LLC which became an authorized to build a railway construction work and has responsibilities for its performance, by looking over basic structure of 240 km railroad of Tavan tolgoi-Gashuun sukhait direction. Lower and upper soil base structure performance of previously established railroad is 51.8 percent and reconstruction will be needed more than 10 US$ due to weather condition and late time.
Professionals says that losses will be increased if we don’t take any measure about it. Total US$ 547 million will be needed to build railroad and get into usage.
Mongolian government set a goal to build and get into usage railroad of Tavan tolgoi-Gashuun sukhait direction in short time in the first frame of policy that increase coal export and reduce transportation. More than 1200 working place newly will become if the railroad has been built, 32US$ expense per every ton coal transportation will be decreased by more four times to 8 US$ as well as about 30 million tons coal will be exported on this railroad a year.
It is possible to build up to 20-28 US$ tax in State budget, increase by more 2-3 times mining of group coal field of Tavan tolgoi and resolve completely accidents and other difficulties on coal transportation road and coal price is being sold 74 US$ per ton from mining bench will be increased to 120 US$ for further in case of transport with value added it will be 200-300 US$ a year.
An example, if a railroad is in use, sale income of “Erdenes Tavan tolgoi” JSC from 1.9 one hundred billion tugrugs to 5.1 trillion tugrugs and its net profit will be 2 trillion and it will be increased more than by 2.7 times from today’s level. Mongolian mining companies will be able to compete in World market at cheap prices by transporting on railroad to China and its ports as well as the third countries market. The railway will be transported to China, its ports and third-country markets, and Mongolian mining companies will be able to compete on the world market at low prices. Therefore the Mongolian Government aims to finance the first 30 percent financing in railroad construction work with 30 percent from net income of Erdenes-Tavantolgoi Company and other 70 percent will be loan. Chief of Parliament Secretariat said that he will submit this issue in Cabinet Meeting and discuss and resolve it.
Source: www.zasag.mn
