[ET Net News Agency, 9 April 2014] Mongolian Mining Corporation (00975) said it agreed to establish a joint venture with China Shenhua Overseas Development and Investment, Erdenes Tavan Tolgoi JSC and Tavan Tolgoi JSC to be named as Gashuunsukhait Railway LLC for the development of cross border freight railway, which would connect Gashuunsukhait port station of Mongolia to Ganqimaodu port station of China.
Mongolian Mining, Erdenes Tavan Tolgoi JSC and Tavan Tolgoi JSC will each hold 17% in the JV while Shenhua will hold the remaining 49%.
The initial authorized capital of the JV is US$500,000. Upon establishment, the JV plans to conduct technical studies and engineering works in the first half of 2014 and a comprehensive budget for capital expenditure requirement of the Cross Border Railway project is expected to be developed. A further funding of up to US$10 million, which is to cover detailed technical studies, engineering design and clearing out necessary preparations for constructions, will be contributed in proportion to the parties' respective equity interests in the JV. (HL)
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