“Erdenet – Ovoot mine railway” project receives green light from the Cabinet Meeting.
In 2013, Erdenet – Ovoot mine railway project was listed in “State Funded Concession Projects” and its category was changed from “tender bid selection” into “direct agreement”. Hence, the potential project management company will be invited to implement the project.
The project was included in the appendix of the “Program to Overcome the Economic Slowdown”, approved by the State Great Khural in 2015. According to the some earlier information, the project size is 1.3 billion US$ for the 547 kms long railroad in between Ovoot coal mine to Erdenet City, to be completed within 3 years. The Pre-Feasibility Study says that the project ROI will be completed within 20 years.
30% of the total fund will be the private placement and 70% is long term loan. Railway performance capacity is 22.2 million tons per year.