border review | 29 October 2011

Mongolia's railway dilemma

Mongolia faces a dilemma in which direction to build a new rail link to export coal from its Tavan Tolgoi mines – north to Russia or south to China. Now, the Mongolian government announced a middle way to please both sides. The Moscow Times reports:

Mongolia said it plans to synchronize the openings of two export railways to Russia and China to accelerate coal sales from the Tavan Tolgoi mine, one of the world’s biggest unexploited coal deposits. It may complete the railways as soon as 2014, Yondon Manlaibayar, director general at Mongolia’s Ministry of Roads, Transport, Construction and Urban Development, said in an interview in Hong Kong.

The consortium headed by Russian Railways is one of the finalists in the bid to develop the western section of Tavan Tolgoi.