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.

Polo Resources says Ereen Mine to enter production Oct, road ahead of schedule

LONDON (Thomson Financial) - Polo Resources Ltd. said on Tuesday its Ereen open pit mine is due to come onto production in October and the construction of the new road from the mine to the Erdenet rail loading facility in northern Mongolia, is ahead of schedule.

Production at Ereen is expected at the rate of around 100,000 tonnes per month, while the 32-kilometre main haulage road is 30 percent complete and is being constructed to an all-weather standard.

'Sale prices for this coal are high and will allow Polo to make significant returns on the small capex investment it has made,' Polo resources said.

It added it has signed an agreement with Sujitz, a coal trader, to review offtakes of coal from Ereen and Union coal projects.

The company further said the Ereen project allows Polo to get valuable experience of mining in the region before it reaches the development stage of its much larger coal projects in the South Gobi coal basin.

Mongolia Pursues Petrol Import Deal With China

Text of report in English by Mongolian news agency Montsame website

Ulaanbaatar: Mongolia imports petrol from Russia. The petrol import depending on one country is expected to be changed soon. A working group led by Ch. Chuluunbaatar, the accredited representative of the Minerals and Oil Authority of Mongolia, left for Beijing, China, last Sunday [27 July] to conclude an agreement with the Chinese side. Other working group headed by D.A. [report truncated at this point].

Originally published by Montsame website, Ulaanbaatar, in English 29 Jul 08.