China will take advantage of the essential opportunities brought by the linking of China’s Belt and Road Initiative and Mongolia’s Development Road initiative to expand cooperation in various fields and people-to-people exchange, Chinese President Xi Jinping said on Tuesday(Apr 10).
Chinese Premier Li Keqiang called for initiating feasibility research on a China-Mongolia free trade agreement and speed up the building of a cross-border economic cooperation zone. With the China-Mongolia-Russia corridor, two free trade zones must be established: one in Gashuun Sukhait on the Sino-Mongolian border and the other in Altanboulag on the Russian-Mongolian border.
According to the official press release on Mongolian cabinet, Presidents Xi Jinping of China, Vladimir Putin of Russia, and Battulga Khaltmaa of Mongolia trilateral meeting will be held at the SCO summit in June 2018, to Qingdao, China.
Mongolia aims to take advantage of its strategic position between China and Russia to become a “transit corridor” to facilitate trade, as well as oil and gas deliveries. During the official visit of Mongolian PM Khurelsukh Ukhnaa, bilateral business parties signed 36 financial funding agreements which is equal to 4.6 billion dollars. Belt and Road International Cooperate Construction Investment Limited, one of the those agreement, signed MOU with Eastern oil Co., Ltd to implement China-Mongolia-Russia natural gas project.
Besides this, Mongolian Railway State Owned Share Holding Company has signed the MOU with China Baxin Railway Co., Ltd to implement the Trans-Mongolia Railway projects’ new line(Khoot-Choibalsan, Koot-Bichigt).
Northern Railway Co., Ltd, Aspire Mining’s (ASX:AKM) subsidiary, and China Gezhouba Group International Engineering Co., Ltd signed the additional agreement to concession for the Erdenet to Ovoot Railway project. Coincidence with that event, Aspire Mining announce that a Mongolia northern railway draft feasibility study completed.
If you need more detail about the financial agreements, the list in enclosed.