TAVAN TOLGOI AGREEMENT IS TO REFLECT EASTERN RAILROAD CONSTRUCTION ISSUE

Ulaanbaatar /MONTSAME/ The working group, formed to issue a conclusion and come up with solutions to the controversial matters in the draft Tavan Tolgoi operations agreement, is discussing certain business offers. For instance, they considered suitable to include in the agreement a clause that tells about commercializing the 1,072 shares owned by every citizen and building an eastern railroad that connects Sainshand, Khoot, Choibalsan and Ereentsav. The engineering drawings and general construction plan of the above 1,300 km railroad have been completed by Japan’s Nippon Koe Company. Currently, Samsung Corporation is executing the construction of the base structure of the 267-km southern railroad connecting Tavan Tolgoi deposit and Gashuunsukhait border checkpoint. The construction is funded by 200 million US dollars drawn from the Chingis bonds. The working group resolved to give obligation to the Cabinet to reach an agreement with the project-executors to settle the financing form with a condition to complete the mentioned railroad construction and cover the payments by coal.