A new 245 km hard-surface road parallel to the existing coal transport gravel road from Ukhaa Khudag to the Gashuun Sukhait border crossing has been completed and operational since October 2011. The road was built under contract with the Government of Mongolia on a BOT basis for ten years from the date of the commissioning of the road. Prior to completion of the railway project, the Company intends to use this road as its primary transportation link to China. The auto road project is a venture of an all-Mongolian team of engineers with a strong reputation in the domestic auto construction industry.

The paved road, with a transportation capacity of up to 18Mtpa, enables an increase in transportation capacity and the reduction of transportation costs, thereby having direct positive impacts on profitability. Most importantly, the paved road has the positive effect of reducing dust and negative environmental and social impacts caused by coal operations on the existing gravel road.

The new hard-surface road handles trucks with load capacities of up to 100 tons.