Source: Bernama                Date: 06 October, 2010

A new highway linking China and Mongolia will be jointly built by the two countries and is expected to improve coal transportation as well as promote economic development in both nations. The 245-km highway, costing around USD375 million, will run from Mongolia's southwest Omnogovi Province to Ganqimaodu, a border town in China's Inner Mongolia Autonomous Region.

Two firms from China and Mongolia plan to set up a joint venture to be the main builder of the highway. The Mongolia firm will own 51 percent of the joint venture. Construction is scheduled to be completed in two years. The project plan has already been submitted to the authorities of the two countries.

Trade between China's Inner Mongolia Autonomous Region and Mongolia reached USD5.33 billion and jumped 33.5 percent year on year over the first eight months of this year. As of September 22, around 5.24 million tons of coal has been transported to China via Ganqimaodu.