China seeks to build new rail line for Mongolian coal

Inner Mongolia’s Mengdian Huaneng Thermal Power Corporation is planning to build a rail line to haul coal from the Mongolian border with China.

The power company, a unit of China Huaneng Group, the country's top power producer, said the rail line will run from Baiyunebo, or Bayan Obo, to Mandula, a port of entry on the China-Mongolia border.

This information was released in a company filing with the Shanghai Stock Exchange.

The 83-kilometer rail line is expected to cost 1.3 billion yuan (US $190.4 million) to construct. Further, it may take up to 18 months to build.

The rail line will be used to bring Mongolian coal and other raw materials for use in Baotou Iron & Steel, China's No. 13 steel maker, the company said.