(Yicai Global) April 8 -- Shares in Tibet Gaozheng Civil Explosive Materials gained by as much as 7 percent today after the Chinese incendiary device provider announced that it has won the contract to supply explosives for the construction of the final segment of the Sichuan-Tibet railway line.

Gaozheng Civil Explosive’s stock price [SHE:002827] closed up 3.56 percent at CNY11.64 (USD1.78). Earlier in the day it had reached CNY12.08.

Gaozheng Civil Explosive will supply the explosives needed for the building of the 1,011-kilometer-long Ya’an-Linzhi section of the railway line linking Lhasa in the Tibet Autonomous Region with Chengdu in southwestern Sichuan province, the Lhasa-based firm said yesterday.

Some 80,000 tons of industrial explosives, 85 million detonators and 58 million meters of detonating cords will be needed, according to a preliminary estimate by contractor Sichuan-Tibet Railway, it said.

While prices were not given, the contract could be worth as much as CNY2.26 billion (USD345 million) based on current prices.

The segment began construction in November last year and is expected to last 10 years. As one of the highest railways lines on earth, it will traverse some of the world’s most challenging topography. The Lhasa to Linzhi and Ya’an to Chengdu sections are already in operation.

Once complete, this will be the second railway line linking the remote Tibetan highlands with the rest of China. The Qinghai-Tibet railway, linking Xining in northwestern Qinghai province with Lhasa, started operating in 2006.

Editor: Kim Taylor