Mongolia has decided to start construction of a key cross-border coal railway in April, Mongolian media reported on January 30, one step closer to achieve rail transport from its largest coal minefield Tavan Tolgoi.

The planned railway will connect border crossing Gashuunsukhait on the Mongolian side and Ganqimaodu on the Chinese side.

Mongolian Prime Minister Luvsannamsrai Oyun-Erdene had instructed relevant departments to commence construction by April 30, following senior officials from both countries met in Beijing and discussed progress on the bridge construction, ways to accelerate customs clearance and border inspections.

The railway is seen as crucial infrastructure that could help Mongolia boost coal exports and help China diversify its coal import routes. However, financing and environmental approvals have caused repeated delays to the project over the past decade.

In February 2022, Oyun-Erdene and his Chinese counterpart Li Qiang agreed to start the cross-border railway construction in 2023 and put into use on 2024.

The railway connecting Tavan Tolgoi to Gashuunsukhait completed in September 2022.

Once the last-mile transport issue is solved, 30-50 million tonnes of coal can be delivered annually from Tavan Tolgoi to China by train, and the transport cost will be slashed to $12/t from about $50/t by truck.

(Writing by yan.sun  Editing by Alex Guo)
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