"ERDENES-TAVAN TOLGOI" JSC WILL OWN 66 PERCENT OF "ZUUNBAYAN TUMUR ZAM" LLC

At today's (September 23, 2020) regular meeting of the Government of Mongolia, a number of issues related to the operations of “Erdenes-Tavantolgoi” JSC were discussed.
For example,
A decision has been made to establish “Zuunbayan Railway” LLC in order to resolve the essential funds for the financing of the infrastructure work of the Tavan Tolgoi-Zuunbayan railway.
 
“Erdenes-Tavantolgoi” JSC owns 66 percent of “Zuunbayan Railway” LLC and remaining 34 percent will be owned by Mongolian Railway State Owned Company.
 
“Erdenes-Tavantolgoi” JSC has invested over 740 billion MNT in the construction of the Tavan Tolgoi-Zuunbayan railway. The investment is guaranteed by 66 percent of the joint venture.
 
A regular Cabinet meeting approved an integrated surface planning that provides for the integrated development of the Tavan Tolgoi deposit and the coordination between infrastructure projects and programs.
 
This integrated surface planning includes mining, construction, railway, road alignment, power plant, water supply, coal concentrator and coal loading center within the 68,000 hectare area owned by Erdenes-Tavan Tolgoi JSC. It is expected that the approval of the plan will improve the coherence of these projects and increase their economic benefits.
 
In addition, the Cabinet meeting issued a work permit to Tavan Tolgoi Railway for construction of a 22 km railway infrastructure work that connecting the Tavan Tolgoi-Gashuunsukhait railway with the Tavan Tolgoi-Zuunbayan route. Also instructed the relevant ministers to start the process within this year to conduct a detailed engineering plan and environmental impact assessment.
 
The required funds will be financed by “Erdenes-Tavantolgoi” JSC. By connecting the above two routes, it will be directly connected to the main railway line.
 
It is estimated that the Tavan Tolgoi coal deposit, Tsagaan Suvarga, Aduunchuluun, Chandgana, Talbulag and Khuut copper, coal, tungsten, zinc and fluorspar deposits will be exported an average of 50 million tons per year, and rail freight will increase 3.5 times.