Chinese enterprises are encouraged to cooperate with their Mongolian
counterparts on the basis of Mongolian law and international norms, Foreign
Ministry spokesman Hong Lei announced Monday.

“China and Mongolia are friendly neighbors. We have had effective
cooperation in mining, an important area of the China-Mongolia trade
partnership,” Hong said at a regular news briefing when asked about
Chinese companies” planned takeover of Mongolian mineral resources.

State Councilor Dai Bingguo paid a visit to Mongolia from August 22 to 25
and exchanged views with Mongolian leaders on bilateral ties.

Mongolian President Tsakhia Elbegdorj told Dai that Mongolia hopes to seize
opportunities brought about by China”s development to promote bilateral
cooperation and realize mutual development.

“We hope to strengthen cooperation with Mongolia on the basis of mutual
respect in order to benefit the two peoples and boost ties with Mongolia”s new
government,” Hong said.

The Aluminum Corp of China Limited, the listed arm of the country”s largest
electrolytic aluminum producer, plans to buy a 56- to 60-percent stake in
SouthGobi Resources, although media reports have indicated that the deal could
face opposition from the Mongolian government.