During the official visit of Prime Minister N.Altankhuyag to China, officials of Mongolia and China signed three memorandums of understanding (MoU), based on official negotiation and the program for the medium and long-term development of China-Mongolia strategic relations in the mining and oil sector.

The Ministry of Mining for Mongolia, “SINOPEC” China Petroleum & Chemical Corporation signed an MoU to build a gas industry based on the rich Mongolian thermal coal resource, to provide domestic needs with its production and to further supply it to the Chinese market.

The gas industry is already planned to have the capacity of outputs of 15 billion cubic meters of gas at first. This amount of gas production would need almost 50 million tons of thermal coal a year. The thermal coal worth one billion US dollars at the current market price is expected to be used for the production of 15 billion cubic meters of gas in one year.
 
Such an industry and the related entities will provide over 20,000 people with employment.

The Ministry of Mining”s Petroleum Authority and Chinese PetroChina International Corporation Limited signed an MoU to increase the crude oil supply to China extracted in Mongolia due to its constant increasing demand. Mongolia and China have deals to buy up to 10 thousand tons of petroleum from China every month in order to provide domestic needs.

Erdenes Tavantolgoi LLC, a subsidiary of state owned Erdenes MGL, Energy Resource LLC, Tavan Tolgoi company representing Mongolian companies signed an MoU with Chinese Xinhua Energy on a billion ton coal supply cooperation in 20 years from Mongolia to China due to coal extraction and production capacities.

The parties agreed to study the possibilities to sell Mongolian coal to the international market.