$3b railway to ship coal out of Mongolia

A South Korean consortium has signed a $3 billion preliminary deal to build a railway serving the world’s largest untapped coal mine in Mongolia. The consortium includes the state-run Korea Rail Network Authority and top builders such as Daewoo Engineering & Construction, Hyundai Engineering & Construction and Lotte Engineering & Construction.Lotte Engineering said the deal between the consortium and Mongolian Railway was signed in Seoul yesterday, adding that work is planned to begin next year.

The consortium has offered to build a 1,040-kilometre railway linking Mongolia’s Tavan Tolgoi mine in the south Gobi desert with the eastern city of Choibalsan.

Tavan Tolgoi is the biggest untapped coal mine in the world, with about 6.4 billion tons of reserves.

The five-year project is part of a Mongolian government plan to build 5,500 kilometres of cross-country rail by 2015 to transport mineral resources from its mines.

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