Oilprice.com: Mongolia’s Coal Riches Causing Diplomatic Nightmare

Mongolia boasts huge deposits of coal, cooper, gold, uranium and many other rare minerals, and is opening up its vast resources to the world; this has however led to many diplomatic problems for the Asian nation. Mongolia is unfortunately situated between Russia and China, and with no coast it relies on passing through these two countries; routes which Moscow and Beijing make Mongolia pay dearly for. Currently the development of the world’s largest coal deposit at Tavan Tolgoi is being discussed, with international investors vying to get a share of the riches buried beneath the earth. One easy option would be to work exclusively with China on the mining of the coal, since nearly all of the coal will end up there anyway. However, Mongolia are reluctant to give China so much control over an important industry and revenue earner due to the fear that it will give the People’s Republic large political influence in Ulan Bator. To avoid this situation the Mongols have spent years expertly playing a diplomatic game as they consider who should be granted the rights to develop an estimated 900-million-ton portion of the deposit, much of it prized coking coal essential for making steel. To read the full article, click hereMongolia’s Coal Riches Causing Diplomatic Nightmare

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