The Russian delegates of “Ulaanbaatar Railway” Joint Cooperative have arrived in Ulaanbaatar to meet their Mongolian counterparts to attend the general committee meeting and focus on a possible increase of capital. Since the parties agreed upon increasing its capital up to USUSD250 million, no progress has been made so far.  The meeting is considered as important by both parties who are due to discuss 11 issues such as 2010 production activities and the financial situation of the Joint Cooperative. Ulaanbaatar Railway, which controls Mongolia’s railroads’ proper are owned by the governments of Mongolia and Russia. The general committee consists of six members, three Mongolians and three Russians.

Last May, the set up of a joint venture between the Russian rail monopoly and its Mongolian partners was agreed during Prime Minister Vladimir Putin’s visit to Mongolia. Russian Railways (RZD) pledged to modernize and build railways in return for development licenses for Mongolia’s largest deposits, the Tavan Tolgoi coal deposit and the Oyu Tolgoi gold and copper field.

The joint venture is not to develop the deposits anymore but to form project operators with the selected co-investors.