SouthGobi starts building highway from Ovoot Tolgoi to Mongolia-China border

SouthGobi Resources has started constructing a new paved coal highway from its Ovoot Tolgoi coal project to the Mongolia-China border, the miner said late on Tuesday June 19.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The highway, which extends from the Ovoot Tolgoi complex to the Shivee Khuren border crossing, will have an intended carrying capacity of more than 20 million tpy of coal upon completion, SouthGobi said.

“The new paved coal highway will significantly increase the safety of coal transportation to the border, reduce dust, and improve efficiency and capacity of coal transportation,” SouthGobi president and ceo Alexander Molyneux said in a statement.

It is unclear when the highway is scheduled for completion as SouthGobi could not be reached at the time of writing.

But the statement noted that SouthGobi had signed a 15-year agreement with Mongolia’s State Property Committee to build and operate the highway.

Mongolian coal is largely being trucked as the landlocked country lacks rail infrastructure.

The Mongolian Mining Company in late 2011 opened its new 245km paved road to the border, which is estimated to have capacity for 18 million tpy of coal, up from the previous limit of 6-7 million tpy on the dirt road, according to a CLSA research.

What to read next
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
Low supply, strong demand to spur scrap prices higher in Feb, market says
US deep-sea ferrous export prices from the East Coast to Turkey have plateaued, with a Turkish mill purchasing a cargo at prices stable from the last-reported sale
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed