Mongolia’s government is advancing negotiations with China on the Gashuunsukhait-Gantsmod cross-border railway, a project aimed at expanding coal exports and enhancing trade ties. Ts.Tuvaan, the Minister of Industry and Minerals, presented the progress of discussions during a cabinet meeting yesterday.
L.Oyun-Erdene, the Prime Minister of Mongolia, recently hosted a delegation from China Energy Group in Beijing, during which he discussed Mongolia’s priorities for long-term energy trade. On October 28, China Energy Group formally outlined its support for the project, emphasizing the need for stable regulations and cooperative economic policies.
The proposal from China includes several measures to support cross-border coal transport, such as increased mine capacities and railway infrastructure. The Gashuunsukhait-Gantsmod railway project is part of the Mongolian government’s 2024-2028 agenda, topping a list of 14 high-impact initiatives aimed at boosting the economy. To move forward, officials are working on amendments to certain laws and regulations.
Upon completion, the Gashuunsukhait-Gantsmod railway will create opportunities for additional regional transport projects, including the Khangi-Mandal and Shiveekhuren-Sekhe railways. The government projects that these infrastructure upgrades will increase Mongolia’s coal export capacity to 120 million tons annually, potentially lifting per capita GDP to USD 10,000.
