|| Ukhaa Khudag mine|
|| Baruun Naran mine|
|| Coal handling and processing plant|
|| Power plant|
|| Water supply|
|| Transportation and Logistics|
|| Paved Road|
|| Rail road|
|| Mining camp and housing|
On 31 May 2012, MMC entered into a Build-Operate-Transfer (“BOT”) Concession agreement with the Government of Mongolia, allowing the Company to build and operate the railway base infrastructure between UHG coking coal mine and the Gashuun Sukhait (“GS”) border check point of Mongolia for a period of 19 years of the concession term.
The UHG-GS railway will be a heavy haul freight railway of approximately 240 km in length with estimated capacity of up to 30 Mtpa and will be used to transport coal to China and ultimately to other seaborne markets through GS. The Company partnered with Deutsche Bahn, a German consortium that specializes in railway construction and management, in the detailed design study and technical solutions. The base railway structure, once completed, will result in improved operational efficiency, reduced transportation costs and the improved reliability of the overall project.
The construction of the railway is expected to be completed in the 2nd half of 2014 and start full operations by 2015.