Mongolia will decide which part of the territory will be used for the construction of the Russia-China gas pipeline after neighboring countries reach an agreement on the cost, the country’s prime minister said.
Russian energy company Gazprom plans to build the 2,600-kilometer Power-of-Siberian 2 gas pipeline to supply 50 billion cubic meters of gas per year to China by 2030.
Mongolian Prime Minister Luvsannamsrain Oyun-Erdene told Reuters on Tuesday that talks between his two major neighbors had stalled due to the war in Ukraine, but would likely return to the negotiating table.
Oyun-Erdene said once Russia and China decide on a price, Mongolia will decide how to use its territory to transport gas.
Nearly 80% of Mongolia’s total exports go to China, but the mineral-rich country is working to expand its trade and mining ties beyond China and Russia, and hopes to become a bridge between the two countries. Europe and Asia. “We are discussing cooperation in the field of rare earths; we are in discussions with German and French sites on copper production and we are strengthening our private sector partnership with South Korea.” and Japan,” said Oyun-Erdene.
On Monday, the country started underground production in the long-delayed Oyu Tolgoi project, in which it has a 34 per cent stake, with British-Australian miner Rio Tinto holding the remainder. again.
Oyu Tolgoi is slated to eventually produce more than 500,000 tonnes of copper a year and help Mongolia become one of the largest producers of the metal in the world.
With mining accounting for a quarter of the country’s GDP and around 93% of its exports, Mongolia is implementing reforms to safeguard its economy from volatility in commodities markets, the prime minister said.
The government will start a sovereign wealth fund to cushion itself against raw material price volatility, diversify its economy and invest more in building infrastructure and logistics.
“These measures will greatly contribute to balance our economy and address the issue of volatility,” Oyun-Erdene said.