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The U.S. is funding a $390,000
study which seeks to increase trade at competitive prices in Mongolia’s
mining industry. A major concern for Mongolia
is finding economical ways to transport minerals mined in Mongolia to
world markets.
As an example, Mongolia’s
mining sector currently exports coal to China along road and railway
systems. Trucking mined commodities is costly and, given rising fuel
prices, reduces the industry’s profits. By utilizing rail, rather
than trucks, minerals may be moved more efficiently than using trucks.
Seeking assistance, Sharyn
Gol Energy LLC, Mongolia’s largest mining operator, responsible for
mining 15 percent of the nation’s coal, asked the United States Trade
and Development Agency (USTDA) to help.
In response, a US $391,550
grant has been approved to allow for a study to be completed to construct
a more economical and environmentally sustainable railway from the Sharyn
Gol coal mine in Shivee Ovoo to the existing north-south Mongolian Railway.
The U.S.-based TERA International
Group has been selected to conduct the study. “The project will increase
production and allow for further expansion of mining and transport services.
Some 1,500 new jobs will be created for Mongolians in addition to increased
opportunities in support services and local industry,” said Mark Dunn
of TERA.
The proposed project will seek
to increase export capacity from the current 300,000 tons of coal per
year from Shivee Ovoo to 1 million tons in 2011. When the transport
capacity is improved using more efficient mining processes and improved
technology and equipment, it is expected that annual output could reach
5 million tons.
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