What happened?
India is expected to sign a preliminary agreement with Mongolia focused on cooperation in geology and exploration, specifically for copper and coking coal. The proposed deal is in an advanced stage, with the Indian cabinet approving the memorandum of understanding (MoU). Indian companies, including Adani, Hindalco, and Vedanta, have expressed interest in sourcing resources from Mongolia, known for its high-quality coking coal.
Why it matters to India.
The agreement is vital for securing essential resources, reducing import dependency, and diversifying supply chains. It would strengthen India’s economic and geopolitical ties with resource-rich Mongolia, supporting its growing industrial demand and ensuring long-term resource security.