It is reported that surveying and detailed design of a new railway to open up the mineral deposits in the South Gobi area is expected to get underway in November following the signing of a formal accord between the Transport Ministry and Russian Railways on October 15th.
The memorandum of agreement was signed by RZD President Mr Vladimir Yakunin and Mongolia’s Minister of Roads, Transportation, Construction & Urban Development Khaltmaa Battulga during an international workshop in Ulanbataar on the strategic development of Mongolia rail network. Other participants in the conference included Director of the Infrastructure Development joint venture company Mr Vitaly Morozov the President of Korea Rail Network Authority Mr Cho Hyun-yong and Mr Wang Linshu Senior Adviser at the Chinese Ministry of Railways along with representatives from Ivanhoe Mines and Boston Consulting Group.
Intended both to serve mineral reserves and to encourage wider economic development in the Omnogovi region, the new railway will start from the current branch terminus at Dzüünbayan in neighbouring Dornogovi. It will run west to the Omnogovi regional capital at Dalanzagdad, paralleling the Chinese border.
Under an agreement signed in Ulanbataar on May 13th the line will be promoted by Infrastructure Development a limited company in which RZD holds a 50% stake, Mongolian mining group Erdenes MGL holds 25% and Mongolian Railway the remaining 25%. RZD also holds a 50% stake in MTZ which was transferred from the Russian government earlier this year. RZD has agreed to contribute financing and resources up to USD 250 million towards the cost of the new line project.
