the State Great Khural (Parliament) of Mongolia ratified a landmark agreement between the governments of Mongolia and China to enhance cooperation in railway connectivity, coal trade, and the development of the Tavan Tolgoi coal mine.
Minister of Industry and Mineral Resources Tuvaan Tsevegdorj introduced the agreement, highlighting its strategic importance for Mongolia’s economic growth. This approval follows earlier parliamentary resolutions in 2023 and December 2024, paving the way for enhanced cross-border infrastructure.
The agreement, formally signed on February 14, 2025, in Harbin, China, specifically targets the construction and operation of the Gashuunsukhait-Gantsmod cross-border railway and aims to significantly expand coal export capacities from the Tavan Tolgoi mine.
During negotiations, Mongolia successfully secured the right to maintain its railway gauge standards and regulations, as well as the ability to transport third-party cargo via the new railway route. The agreement also establishes competitive long-term pricing for coal exports. However, China declined Mongolia’s proposal to have the railway built by a single unified contractor, resulting in Mongolia planning a separate competitive bidding process for construction contracts.
Minister Tuvaan stated the approved agreement represents a major economic milestone, facilitating rail connections between additional Mongolian-Chinese border points, increasing coal exports, and helping accelerate Mongolia’s implementation of its Sovereign Wealth Fund law. This would ensure equitable distribution of the country’s mineral wealth, benefiting current and future generations.
