Eurasian Natural Resources Corporation PLC, the holding company of a leading diversified natural resources group based in Kazakhstan, announced that ENRC Logistics has won the Kazakhstan State tender for the China Gateway Project.

The China Gateway Project will involve the construction of approximately 300 kilometers of railway in South-East Kazakhstan, which ENRC will subsequently operate.

1. A single track railroad will be constructed between Zhetigen in the Republic of Kazakhstan and Khorgos on the Kazakhstan-Chinese border.

2. Four intermediate stations, ten intersections, and a loading complex will also be built as part of the project.

Mr Johannes Sittard CEO of ENRC said “We are proud to be involved in this great project. The new railway will facilitate the increase in cargo carried between Kazakhstan and China by up to 30 million tonnes per annum. It will provide ENRC’s operations with an additional secure transportation route and with an increased capacity for products to be sold into the growing Chinese market.”

The USD 900 million capital expenditure projects will be the largest ever private investment in Kazakhstan’s transport infrastructure. Construction will begin later this year and it is envisaged that the railway will commence operations in 2012. ENRC’s concession to operate the railway will run until 2036. The realization of the project will enable ENRC to improve the delivery of its products to customers in China, diversify the activities of ENRC Logistics and enhance profitability by offering services to third parties.