China Gezhouba Group International Ltd (CGGC) has delivered a draft feasibility study for the Erdenet – Ovoot railway project to Northern Railways (NR), a subsidiary of Aspire Mining.
The Feasibility Study again confirms the financial viability of the Erdenet-Ovoot railway. NR will now review the study and provide feedback before finalisation.
The Erdenet – Ovoot line extends 549 km between the town of Erdenet to Aspire’s Ovoot project, which connects northern Mongolia to China and international markets. In accordance with Mongolian National Rail Policy, 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.
In August 2015, Northern Railways was granted an exclusive 30 years concession by the Mongolian Government to build and operate the Erdenet – Ovoot railway.
Apart from providing the feasibility study and working closely with funding partners, the Rail Concession Agreement was recently been amended to include CGGC as a joint EPC contractor with China Railway 20 Group Bureau Corporation.
Northern Railways is now progressing funding negotiations for the completion of the Concession Agreement conditions precedent, other studies to support applications for licenses, permits and approvals, and the railway construction.
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