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India and Mongolia Establish Mining Partnership

India is preparing to sign a Memorandum of Understanding (MoU) with Mongolia to boost collaboration in geology and resource exploration, focusing on securing critical materials such as copper and coking coal. This partnership aims to diversify India's resource supply, reduce reliance on traditional suppliers, and bolster its industrial sectors.

India is set to sign a Memorandum of Understanding (MoU) with Mongolia to strengthen cooperation in geology and exploration, aiming to improve resource security and diversify supply chains. This agreement comes as India increasingly relies on imports to meet the growing demand for copper and coking coal, which are vital for power generation, construction, and steel production industries.

Key Aspects of the Agreement

Scope of the MoU: The MoU will concentrate on geological research and exploration, promoting collaboration between Indian and Mongolian entities in the mining sector.

Strategic Significance: Mongolia’s abundant copper and coking coal reserves offer India a valuable opportunity to secure high-quality raw materials, reducing its reliance on traditional suppliers.

Supply Route Considerations: Ongoing discussions are focused on identifying the most efficient and secure transportation routes for these resources. While the route through China is more convenient, India favors the longer route through Vladivostok in Russia to minimize geopolitical risks.

Implications for Indian Industry

Diversification of Supply Sources: This partnership enables Indian companies to broaden their sources of copper and coking coal, key materials for industries such as power, construction, and electric vehicles.

Improved Resource Security: Through collaboration with Mongolia, India seeks to establish a more stable and reliable supply of these vital raw materials, fostering the growth and sustainability of its industrial sectors.

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