Mongolia-China railway extension to increase coal transport capacity by 30Mt

Staff Writer | May 16, 2025 | 1:17 pm Suppliers & Equipment Asia Coal

Event marking start of construction of the railway crossing on May 14. Image submitted by the Government of Mongolia.

Mongolia’s parliament has ratified a strategic partnership with China to jointly construct the new 19.5-km-long Gashuunsukhait-Gantsmod cross-border railway connecting the two countries.

The project is an extension to the existing railway network that stopped short of the border, requiring trucks to complete consignment deliveries.

Once operational, this railway link will increase coal transport capacity by 30 million tons and enable the expansion of Tavan Tolgoi coal mine, which holds huge potential with untapped coking coal deposits, the government of Mongolia said in a news release.

The railway link is expected to increase coal sales revenue by $1.5 billion per year, increasing economic growth by 0.8% per year, supporting Mongolia in maintaining economic growth at a level above 6%, and containing inflation at 5%.

First proposed in 2009, the project had been subject to significant delays. Negotiations have progressed since Mongolia’s Prime Minister listed it as one of 14 ‘mega projects’ in the government’s action program for 2024-28.

Rendering from the government of Mongolia.

Construction will be overseen by state-owned company Erdenes-Tavantolgoi JSC in Mongolia and by China Energy and its subsidiaries in mainland China.

If other border crossings, such as Khangi-Mandal and Shiveekhuren-Sekhen crossings, are connected, Mongolia’s total capacity for coal exports could reach up to 120 million tons by 2030, the government said.

“The ratification demonstrates the unanimous support across parliament for this project and the government’s ambitious growth agenda,” Prime Minister Oyun-Erdene Luvsannamsrain said in a statement.

“This partnership is unlocking valuable export and investment opportunities, opening Mongolia’s natural resources to drive new investment into the country. We look forward to continuing our cooperation in these areas and expanding our capabilities as a critical mineral rich nation,” Oyun-Erdne added.

“The ratification by the Great Khural gives the green light to a transformative project that will reshape our export industry. The years of overreliance on motor vehicles is coming to an end and our expanded capacity will deliver jobs, growth and other benefits for all Mongolians,” said Tuvaan Tsevegdorj, Minister of Industry and Mineral Resources.