Another step forward for Mongolia's coal train project
Mongolian Northern Railways, a subsidiary of the metallurgical coal exploration enterprise, Aspire Mining, has completed a feasibility study for the 570 km long USD 1.25 billion Erdenet - Ovoot rail project.
The report confirms attractive economics on conservative freight volumes. The initial railfreight demand will be 5 million t (coal and other commodities) per annum, growing to 16 million t per annum twelve years after commissioning.
There is also significant additional transport potential for agriculture exports from the region and for a rail connection from Ovoot through to the Tuvan Republic's capital of Kyzil. This will open up further significant transit railfreight demand, according to Northern Railways.
The feasibility study will now be delivered to the Mongolian government. (ben)