Mongolian metallurgical coal explorer and infrastructure company, Aspire Mining Limited announced that its subsidiary, Northern Railways has entered into a non-binding cooperation agreement with China Gezhouba Group Company Limited (CGGC) to advance the Erdenet to Ovoot Railways Project as part of the Northern
Rail Corridor.
Northern Railways will provide CGGC with access to the existing technical database and will work with CGGC to source debt and equity funding for the Rail Feasibility Study and EPC construction funding from Chinese funding institutions. CGGC and Northern Railways will also work together to promote the Northern Rail Corridor and connectivity with the Russian Rail system.
The Erdenet – Ovoot railway extends 549 km between the town of Erdenet to Aspire’s Ovoot Project, which connects northern Mongolia to China and international markets. The Erdenet to Ovoot Railway is a multi-user rail line and will be available for the transport of bulk materials, agricultural and general freight from the region to export markets including China, Russia and seaborne markets.
Northern Railways, mandated to pursue the development of the Erdenet to Ovoot Railway, is supported by a consortium consisting of Aspire Mining, and subsidiaries China Railway Construction Corporation Limited – China Railway 20 Bureau Group Corporation and China Railway First Survey & Design Institute Group Co Ltd.
In August 2015, Northern Railways was granted an exclusive 30 years concession by the Mongolian Government to build and operate the Erdenet to Ovoot Railway. Northern Railways is now progressing funding negotiations for the completion of a bankable feasibility study and other studies to support applications for licenses, permits and approvals, as well as progressing negotiations for the EPC contract and financing of the railway construction.
The Erdenet to Ovoot Railway will play an important part in the establishment of the Northern Rail Corridor through Mongolia, the subject of a trilateral program agreed by the Presidents of China, Russia and Mongolia.
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