MOSCOW. (RIA Novosti economic commentator...

Russian Railways (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.

It 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%.

At the initial stage, they are to contribute $1.8 million for a feasibility study, which is due to be ready by September. The JV will receive development licenses for the deposits in 2010.

Erdenes MGL owns all strategic deposits in Mongolia, including the Oyu Tolgoi (Turquoise Hill) gold and copper project, the Tavan Tolgoi coal deposit, and the Dornod uranium deposit.

MTZ owns railroad assets, including a fiber-optic-based

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