Mongolia, one day, hopes to export
more than just coal to neighboring China. At a recent cabinet meeting, Prime
Minister S.Batbold outlined plans to ramp up the country’s investments in
alternative energy and to export wind power to China — enough to equal 40
million tons of coal.

Landlocked Mongolia’s largely untapped mineral and energy resources have been
generating a lot of interest. But mining, and the burning of coal, exacts an
environmental toll that could lead to financial hassles. “While Mongolia has a
lot of coal, it is a matter of time before coal-based power plants will become
subject to carbon penalties,” said B.Bold, chief executive of Newcom Group, an investment group in the process of building a
wind-power-generation plant in Mongolia.

The Mongolian government would like to use proceeds from the country’s large
mining projects to subsidize solar, wind and other renewable energy projects.
It would also show preference to mining projects that demonstrate efficient
water use, government officials say.