JOINT RAILWAY COMPANY TO BE ESTABLISHED

Ulaanbaatar /MONTSAME/ A cabinet meeting last Friday permitted Erdenes Tavantolgoi LLC to establish a joint railway company, within goals to enhance the coal exports and thereby improve the foreign trade balance. Thus, Erdenes Tavantolgoi will co-invest with others to form a railway venture in order to build up and operate a narrow gauge railway connecting the Gashuunsukhait port of Mongolia to the Gants Mod (Ganqimaodu) of China. Under an agreement of shareholders, Erdenes Tavantolgoi will own 17% of the joint company’s shares. At the first stage, the shareholders need to collect USD 500 thousand to form the joint company planned.