Ulaanbaatar is the capital of Mongolia. Image: Adobe Stock

The Gashuunsukhait-Gantsmod Cross-Border Railway is an extension to the existing railway network that stops short of the border.

Construction of the new railway and container transfer facility is expected to start in April 2025 and take two and a half years to complete.

Construction will be overseen by state owned company Erdenes-Tavantolgoi JSC in Mongolia and by China Energy and its subsidiaries in China.

Once operational, this railway link will increase coal transport capacity by 30 million tons and enable the expansion of Mongolia鈥檚 Tavan Tolgoi Coal Mine. It is estimated that the railway link will also increase coal sales revenue by US$1.5 billion per year.

First proposed in 2009, the project had been subject to significant delays.

鈥淭he ratification demonstrates the unanimous support across Parliament for this project and the Government鈥檚 ambitious growth agenda,鈥� said Mongolia Prime Minister L. Oyun-Erdne.

鈥淭his partnership is unlocking valuable export and investment opportunities, opening Mongolia鈥檚 natural resources to drive new investment into the country. We look forward to continuing our cooperation in these areas and expanding our capabilities as a critical mineral rich nation.鈥�