ULAN BATOR - Mongolia announced Saturday that it will build an international-standard narrow gauge railroad across its border with China to transport its minerals from the Mongolian Gashuun Sukhait port to China's Gants Mod port.

Ulan Bator has permitted Erdenes Tavan Tolgoi, a State-owned mining company, to co-invest with Chinese companies and form a joint venture to build and operate the railway linking the two countries' border ports.

Both sides have agreed that Mongolia owns 17 percent of the venture's stakes and have the same share of investment. In total, $500,000 will be invested in the initial phase of construction.

Coal is one of Mongolia's major mineral exports to China. The mineral-rich inland country made the decision to protect the environment and reduce the transportation cost of the coal, which has largely depended on costly trucks.