Northern Railways, a Mongolian subsidiary of Aspire Mining Limited, has signed an agreement with China Railways 20 Bureau Group Corporation to conduct the first stage of a feasibility study into the construction of a new mixed-traffic railway between Erdenet and Ovoot.
A wholly-owned subsidiary of China Railways Construction Corporation (CRCC), China Railways 20 Bureau Group Corporation will digitally map the full 547-kilometre route.
The feasibility study will provide “additional project definition”, Aspire has said, creating a detailed construction schedule and capital cost estimate for the project, which will connect Erdenet to Aspire’s mining operation in Ovoot.
The Northern Rail Line has recently been included in the Mongolian Government’s National Rail Policy. Subject to the granting of a concession agreement for the railway, Northern Railways has said it plans to commit to funding the remainder of the preliminary studies.
Northern Railways, which will build, operate and maintain the new railway, plans to commission the new line in 2017.
