RZD could invest $1.5 bln in Mongolian coal project if govt provides cash
MOSCOW. May 31 (Interfax) - Russian Railways (RZD) hopes to receive $1.5 billion from the state to put railway infrastructure in place for the Tavan Tolgoi coal project in Mongolia, a source from RZD's top management told Interfax.
"We're prepared to invest $1.5 billion in the project of the state gives us the cash," the source said.
The source did not specify the overall cost of the Russian bid.
Tavan Tolgoi is in southern Mongolia, 250 km from the Chinese border and 540 km from Ulan Bator. It is estimated to contain 6.5 billion tonnes of high-calorific coal - 40% of it coking coal. The field went partially on stream back in 1967. A 400-km railway and power plants will have to be built for it to be developed full-scale.
RZD on March 9 received official confirmation from Mongolia that a bid by its consortium, which includes Russia's Siberian Coal and Energy Company (SUEK), Korean Resources Corporation (Kores), Itochu and Sumitomo, among others, had passed the Tavan Tolgoi tender's pre-qualifying round.