Leighton Holdings Ltd said Energy Resources LLC has awarded Leighton Asia the design and build contract for the Ukhaa Khudag to Gashuun Sukhait freight railway in the South Gobi region of Mongolia.

The main purpose of the rail project is to provide infrastructure to transport coal from the southern Mongolian coal fields to China. The railway commences at the Ukhaa Khudag coal mine where Leighton Asia has a six year coal mining contract and travels 225km to the international border crossing between Mongolia and China.