At its session on March 27, 2025, the State Great Khural of Mongolia approved the Law on Ratification of the Agreement between the Government of Mongolia and the Government of the People's Republic of China on Cooperation in the Gashuunsukhait-Gantsmod Cross-Border Railway, Coal Trade, and Expanding the Capacity of the Tavan Tolgoi Coal Mine.
The draft Law was introduced by Member of Parliament and Minister of Industry and Mineral Resources of Mongolia Tuvaan Tsevegdorj. The Parliament of Mongolia approved Resolution No. 68 “On some measures related to the construction of the Gashuunsukhait-Gantsmod Cross-Border Railway” in 2023, and Resolution No. 58 “On approving the basic guidelines for establishing an Agreement between the Government of Mongolia and the Government of the People’s Republic of China on the Construction of the Gashuunsukhait-Gantsmod Cross-Border Railway” on December 27, 2024.
Furthermore, by the Law on International Treaties, the Government of Mongolia discussed the draft Agreement. On January 27, 2025, the Standing Committee on Economics and the Standing Committee on Security and Foreign Policy of the Parliament discussed the draft Agreement and authorized the Government to sign the Agreement. The Agreement between the Government of Mongolia and the Government of the People's Republic of China on Cooperation in the Gashuunsukhait-Gantsmod Cross-Border Railway, Coal Trade, and Expanding the Capacity of the Tavan Tolgoi Coal Mine was signed in Harbin, China, on February 14, 2025, in accordance with Resolution No. 58 of the State Great Khural, noted Minister Tuvaan Tsevegdorj.
At a joint meeting of the Mongolian and Chinese working groups, the two sides agreed to finalize documents at three levels. The Chinese side proposed discussing the draft agreements, while the Mongolian side emphasized that concluding the Intergovernmental Agreement would establish the legal framework for further discussions. Regarding the agreements to be concluded, the Mongolian side presented several proposals to the Chinese side, including the following:
-Adhering to its own standards and regulations for the railway gauge and transporting third-party cargo once the railway is operational,
-Carrying out the railway construction with a unified design and a single contractor,
-Setting the base price according to the most recently confirmed rate.
The Chinese side accepted the first proposal — to adhere to its own standards and regulations for the railway gauge — and suggested setting the initial coal price at the "most competitive price for a long-term contract." However, it did not agree to the second proposal of having the construction work carried out by a single contractor. Therefore, in accordance with the Law on Procurement of Goods, Works, and Services with State and Local Property, we are working to ensure that the State Procurement Agency announces the bid for selecting the construction contractor in the near future, Minister Tuvaan emphasized.
Minister Ts. Tuvaan introduced the Agreement between the Government of Mongolia and the Government of the People's Republic of China on Cooperation in the Gashuunsukhait-Gantsmod Cross-Border Railway, Coal Trade, and Expanding the Capacity of the Tavan Tolgoi Coal Mine, emphasizing that it will enable the connection of three additional Mongolian-Chinese ports by rail. This development is expected to increase Mongolia's coal mining and export volumes, accelerate the implementation of the Law on Mongolia's Sovereign Wealth Fund, and ensure the equitable distribution of mineral resource revenues to both present and future generations of Mongolia, Minister of Industry and Mineral Resources Tuvaan highlighted.

Published Date:2025-03-31