The agreement was signed on December 3, in the presence of Russian Prime Minister, Dmitry Medvedev, and the Prime Minister of Mongolia Ukhnagiyn Hurelsukha.

Under the agreement, RZD International, in partnership with one of the Russian design institutes, will provide technical consulting services for the 414 km line. In addition, the company will develop recommendations on the organisation of the construction work and train operation on the line.

The new railway line will be connected to the central line of UBZD, which will provide new opportunities for the transport of coking coal from Tavan Tolgoi, a large coal mine in southern Mongolia.

The term for the implementation of the service contract is 12 months.

“We consider this project as the beginning of long-term cooperation on the development of the railway infrastructure of Mongolia. RZD International is ready to offer Mongolian partners modern technologies for repair and construction of infrastructure facilities, which can improve the quality and efficiency of construction works, as well as increase the capacity of the line while ensuring the safety of railway traffic,” Sergey Stolyarov said.

The railway line is expected to have an annual capacity of 30 million tonnes.

Tavan Tolgoi is one of the largest undeveloped coal deposits in the world, with reserves being estimated at 7.4 billion tonnes of coking and thermal coal.