India to Ink Geology and Exploration Pact with Mongolia

India is anticipated to soon sign a preliminary pact with Mongolia regarding geology and exploration, a senior Indian government official with direct knowledge of the situation added. Mongolia, which is landlocked, has abundant reserves of copper and coking coal, while India primarily relies on imports to satisfy the increasing demand for copper utilized in power, construction, and electric vehicles, as well as coking coal for steel production.

 "India's cabinet has approved the MoU (memorandum of understanding) and both countries are expected to sign it soon," the source said, declining to be identified as the deliberations are not yet public.

Firms like Adani, Hindalco, and Vedanta have shown interest in obtaining copper from Mongolia, according to the source. Indian and Mongolian officials are coordinating supply routes for Indian firms to obtain copper and coking coal, with India favoring the Vladivostok route in Russia even though it is farther, stated the official.

"China is convenient but we prefer the route from Russia," the official said.

Relations between the Asian powerhouses India and China became tense following a fatal military confrontation on their contested border in 2020, but have improved since they came to an accord in October to withdraw forces from their remaining two standoff locations in the western Himalayas. In contrast to China, India has historically upheld strong relations with Russia.