Tavantolgoi-Gashuunsukhait railway project to proceed
The project of the Tavantolgoi-Gashuunsukhait railway, which was stopped since 2015, to continue from this year as the basic conditions have been made. Feasibility study on transportation and border railway are currently undergoing.
In June of 2018, Parliamentary resolution No.73 “Paths to develop the coal mining on intensifying activities in Tavantolgoi” instructed the Government of Mongolia to take on intensifying activities of the railway project between Tavantolgoi coal deposit and Gashuunsukhait.
The TavantolgoiGashuunsukhait railway will be approximately 240 km long with 2 stations, 5 passing loops and will pass through Tsogttsetsii, Bayan-Ovoo, Khanbogd soum of Umnugovi province. With this railway built, Mongolia can increase export capacity by 30 million tons of coking and thermal coal annually. Also, Mongolia’s mining companies will be able to compete in the global market for cheaper exports, which will support coal exports and China’s ports.
According to the socio-economic analysis, the railway will decrease transportation costs, increasing the competitiveness of Mongolian coal. It will also improve the mining capacity of the Tavantolgoi mining network 2-3 fold. USD 20- 28 million will be paid as tax and the Government dividend will be estimated as USD 1 billion across 25 years, improving the economic conditions in Mongolia.
