POWERCHINA signed a contract recently, to help develop the Ovoot Tolgoi coal mine in southern Mongolia with South Gobi Resources Co, in Chengdu, capital of Southwest China's Sichuan province.
The Ovoot Tolgoi coal mine is located in Mongolia's South Gobi province, 45 kilometers from the Ceke land port on the China-Mongolia border.
It mainly produces coking coal and semi-soft coking coal. The total known reserves are 80.43 million metric tons and the controlled reserves are 17.29 million tons, as well as an estimated additional reserve of 1.75 million tons.
Under the contract, POWERCHINA will be responsible for work related to the whole process of stripping, mining and transport in the designated construction area of the mine and for its coal sales.
The signing of the contract is expected to further promote an existing cooperation framework agreement for the South Gobi Resources coal mine project in Mongolia. This has already laid a solid foundation for expanding supplies to neighboring China.
Mongolia has vast reserves of high-quality coal and China is the world's largest consumer of coal. South Gobi Resources Co is engaged in the mining of coking and thermal coal in Mongolia's South Gobi province to supply customers in China.
The recent contract signing is seen as the latest achievement in the expansion of the integrated mining and service project in the China-Mongolia Economic Corridor.
The project is predicted to boost the development of the Inner Mongolia land port economy and make a greater contribution to the Belt and Road Initiative.
It is also expected to raise the profile of POWERCHINA's expertise in systems planning and promote its activities in international mining projects.
