At its regular meeting on October 30, 2024, the government assigned Minister of Industry and Mineral Resources Ts. Tuvaan and Minister of Roads and Transport B. Delgersaikhan to advance the development of the Gashuunsukhait-Gantsmod port railway and amend Resolution No. 68.
The ministers are to review and respond to a proposal from China Energy Group regarding a comprehensive approach to cross-border railway development, coal trade, and mining capacity cooperation in connection with the joint construction of the Gashuunsukhait-Gantsmod railway. This review will involve presenting recommendations to Parliament, updating relevant laws, and, if necessary, drafting specific legislation by November 2024.
Resolution No. 68 includes the following directives:
1. Review the 1955 “Mongolia-China Border Railway Agreement” and take appropriate actions.
2. Accelerate the construction of other port infrastructures and border connections as part of the “Agreement on Mongolian Chinese Border Ports and their Regime” between Mongolia and China.
3. Authorize a state-owned company to carry out construction of the Gashuunsukhait-Gantsmod cross-border railway to the Gantsmod port on the Chinese side, with financial backing from Erdenes Tavan Tolgoi JSC.
4. Establish a long-term sales agreement for at least 20 million tonnes of coal between Erdenes Tavan Tolgoi JSC and the state owned company overseeing the Gantsmod port railway infrastructure within China. This agreement will be staged, stable, market driven, and mutually beneficial.
5. Prohibit any contracts related to this resolution from including payment conditions in minerals or raw materials (off take agreements).
6. Optimize the use of the Tavan Tolgoi coal deposit by enhancing extraction, transportation, and export, increasing economic returns, and creating transport opportunities for other mining and non mining products, goods, and raw materials.
7. Engage a legal entity to provide professional consulting services in connection with the implementation of the railway infrastructure and coal sales specified in points 3 and 4.
8. Expedite measures to resolve land use issues associated with the construction of the Gashuunsukhait-Gantsmod cross border railway.
