A 260km long Mongolian railway line carrying coal from Energy Resources LLC’s mine at Ukhaa Khudag to the Chinese border will be constructed by rail design company DB International.

The US$800m project will be monitored, maintained and operated by DB[P1] .

The company has already entered into a US$3.1m contract for the project planning phase.

The single track line will carry 25 ton axle loads when it opens in 2011.

Work on the coal line is expected to begin by the end of 2009.