India is poised to sign a preliminary agreement with Mongolia to enhance cooperation in geology and exploration, focusing on securing supplies of copper and coking coal. This move aims to meet India’s growing demand in sectors such as power, construction, and steelmaking.
Mongolia, a landlocked nation rich in mineral resources, offers high-quality coking coal and substantial copper deposits. Indian companies, including Adani, Hindalco, and Vedanta, have expressed interest in sourcing copper from Mongolia. Discussions are underway to establish supply routes, with India favoring the Vladivostok route in Russia over more direct paths through China, due to strategic considerations.
This agreement reflects India’s strategy to diversify its import sources for critical minerals, reducing reliance on traditional suppliers. The collaboration is expected to strengthen bilateral ties and support India’s industrial growth by ensuring a steady supply of essential raw materials.
In recent developments, Indian steelmakers such as JSW Steel and the Steel Authority of India (SAIL) have been in talks with Mongolian authorities to import coking coal. These efforts are part of a broader initiative to secure alternative sources of coking coal, which is vital for steel production.
