Transportation Infrastructure

Infrastructure to access Mongolian coal is rapidly developing in China. Jiuquan Steel Mill (酒泉钢铁) already has built a railway line to the Ceke border point, where a major automated railcar coal loading facility exists. A second railway line from Ceke, PRC to the industrial city of Linhe, PRC also has been completed. The Mongolian government has designated the Shivee Khuren (Ceke) border crossing a permanent border crossing which allows for distribution of Ovoot Tolgoi coal to customers in China.

On August 2, 2011, the State Property Committee of Mongolia awarded the tender to construct a paved highway from the Ovoot Tolgoi Mine to the Shivee Khuren Border Crossing (the "Paved Highway") to consortium partners NTB LLC and SGS (together referred to as "RDCC LLC"). The Company has an indirect 40% shareholding in RDCC LLC through its Mongolian subsidiary SGS.

On October 26, 2011, RDCC LLC signed a concession agreement with the State Property Committee of Mongolia. RDCC LLC has the right to conclude a 17 year build, operate and transfer agreement under the Mongolian Law on Concessions.

On May 8, 2015, the commercial operation of the Paved Highway commenced. The Paved Highway is expected to have a carrying capacity in excess of 20 million tonnes of coal per year.

On September 17, 2015, the Invest Mongolia Agency signed an amendment to the concession agreement with RDCC LLC to extend the exclusive right of ownership to 30 years.