Prime Minister concludes productive visit to China
Prime Minister N.Altankhuyag paid a four-day official visit to the People’s Republic of China, which concluded on October 26. The sides emphasized that the official visit was fruitful and strategically significant in terms of bilateral economic and social relations. The most essential outcome of the Prime Minister’s visit is that China and Mongolia signed a document that outlines key areas of cooperation for the development of their strategic partnership in the medium and long term. The two countries agreed to cooperate on economic, security, social and cultural matters, and on trade, acknowledging the need to mind each other’s core interests and major concerns.
Fuel supply to be increased by 35 to 40 thousand tons
As part of the medium and long-term development of China-Mongolia strategic relations, officials of Mongolia and China signed three memorandums of understanding on building the coal derived gas producing industry, exporting fuel and supplying petroleum products.
The Petroleum Authority of the Mongolian Mining Ministry and Chinese PetroChina International Corporation Limited signed an MoU to increase China’s crude oil supply extracted in Mongolia due to its increasing demand. Under the MoU the amount of fuel bought by China will be increased by 35 to 40 thousand tons. By increasing the fuel supply, the domestic supply of fuel will be stabilized and the retail price of fuel will be decreased, said officials.
Currently, the Inner Mongolian oil refinery supplies 10,000 tons of fuel a month. The supply amount is set to increase to 35,000 to 40,000 tons per month when the border capacity expansion projects are complete.
Mongolia started marketing Mongol-93 petrol, the first ever fuel produced from oil extracted from Mongolia, in May 2013. The crude oil for Mongol-93 is extracted in Mongolia and processed in the Inner Mongolia Autonomous Region of China.
The supply amount was held up at 10,000 tons a month due to low load capacity at the Zamyn-Uud Railway Station at the Mongolia-China border point, even though crude oil reserves and Chinese refinery capacity have been sufficient.
The border station’s oil transportation expansion is scheduled to be complete by mid-November which will enable Mongolia to transport more fuel from China.
Erdenes Tavantolgoi LLC (a subsidiary of state owned Erdenes MGL), Energy Resource LLC, and Tavan Tolgoi signed an MoU with Chinese Xinhua Energy on a 20-year, one billion ton coal supply cooperation agreement between Mongolia to China due to coal extraction and production capacities. The parties agreed to study the possibility of selling Mongolian coal in the international market.
China to grant scholarships to 1,000 students
During the official visit to China, the sides agreed on increasing the number of scholarship students to China and establishing the first science park in Mongolia. The Chinese side promised assistance to Mongolia to strengthen personnel training, and to provide 1,000 scholarships for Mongolians over the next five years.
Development Bank of China grants 240 million USD in financing
The Development Bank of China will issue a 240 million USD loan to the Development Bank of Mongolia. The interest conditions of the loan will be the same as the interest on the Chinggis Bond. The Mongolian Ministry of Economic Development is withdrawing money from the Chinggis Bond in order to implement the Street Project, which is devoted to the renovation of intersections and the building of new roads.
New railroad to be constructed
An MoU on cooperation between Mongolian Railway’s state-owned shareholding company, MTZ, China’s Shenhua Energy Group, and a consortium of Erdenes Tavan Tolgoi, Energy Resources and Tavan Tolgoi companies was signed by the Executive Director of MTZ P.Bat-Erdene. An MoU on developing Ukhaa Khudag – Gashuun Sukhait Railway between Mongolian Railway and Shenhua Energy Group was also inked. Shenhua Group will construct a railroad connecting Mongolia’s Gashuun Sukhait border port and China’s Gants Mod.
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