China Shenhua Energy, a unit of Chinese coal producer Shenhua Group, has unveiled plans to spend $2.03bn to build a railway line linking Dazhun and Shuohuang in Mongolia.
China Shenhua has received approval from the National Development and Reform Commission to start the 182.3km railway project.
The project will see the proposed railway line connecting Shanxi province, Hebei province and Inner Mongolia, and will be used for the transportation of coal within the Inner Mongolian Autonomous Region.
China Shenhua has said it will cover 35% of the total investment for the project, while the remaining funds will be financed through bank loans.
Upon completion, the railway will have an annual delivery capacity of 200 million tons.