The Russian rail monopoly and its Mongolian partners agreed to set up a joint venture during Prime Minister Vladimir Putin's visit to Mongolia this week, Russian news agency RIA Novosti reports on its Web site Friday.
Russian Railways, or RZD, has 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, RIA Novosti reports.
The report says RZD has signed an accord with Erdenes MGL, the Mongolian state mining company, and MTZ, the country's national railway company, to set up a joint venture to build railways to the mineral deposits and develop the fields.
The Russian company will hold a 50% stake in the $7-billion venture, while the Mongolian partners will each hold 25%, the report says.