Japan’s bid was raised during a Mongolia-Japan joint business meeting on trade and investment between government and the private sector.

The purpose of the meeting was to discuss “Trade and Investment” and “Mining and Minerals” and was attended by Vice Minister of Economy, Trade and Industry, Isshu Sugawara, and over 100 private sector representatives from Japan. In return Mongolia suggested that Japan cooperate on productivity and performance level improvements in the mining industry, strengthening infrastructure, developing human resource potential and expanding foreign trade.

Japan also expressed special interest in purchasing high-quality coal with lower price for a permanent period. Alongside this, it Japan was also interested in bidding in the massive coal deposit at Tavantolgoi.

Vice Minister of Economy, Trade and Industry, Isshu Sugawara talked about the possibility of establishing trade corporation to increase coal exports.

Attendees agreed to launch a joint project on coal dry-enrichment using silica sand in the first phase.

Mongolia and Japan also reached a deal to cooperate on an oil refinery in Darkhan Uul aimag and to conduct surveys to find possible ways to build semi-cocking fuel in an effort to reducing air pollution in Ulaanbaatar city.

However, Japanese also expressed concern about the Mongolian legislative environment,  foreign investment law  and bureaucracy in every level of the Administration.