The agreement allows for Mongolian sourced freight to enjoy tariff discount on transit transport for its exports through Russia for 25 years.
Notably, Mongolian coal exports will receive a 66.4% discount and container transport a 52% discount on the Russian rail system.
Aspire executive chairman David Paull said: “This rail cooperation agreement has two important positive impacts for Aspire.
“The first is that it lowers rail transit costs through Russia to Far East Ports and potentially west to the Black Sea Ports to a point where it is competitive with transport costs to Northern Chinese customers, opening up a larger and more diverse customer base.
Paull added “The second impact is the agreement from the Mongolian Government side to cooperate to assist Russian exports south from the Russian city of Kyzyl to connect with the Erdenet – Ovoot Railway once the Northern Corridor is completed.”
Aspire is the owner of the world class Ovoot Coking Coal Project in Mongolia. The full realisation of the project is dependent on the construction of the Erdenet to Ovoot Railway.
The Erdenet to Ovoot Railway extends 549 kilometres between the town of Erdenet and Aspire’s Ovoot Coking Coal Project.
It forms part of the proposed Northern Rail Corridor which extends across northern Mongolia into southern Russia.