India, Mongolia in talks for preliminary mining pact

India is in talks with Mongolia to set up a preliminary pact that will focus on mineral shipments between the two Asian nations, an Indian government source with direct knowledge of the developments said on Thursday.

“The pact with Mongolia will focus on transit of minerals” such as coal and copper, said the source, who did not want to be identified as the deliberations are not public.

The federal mines ministry did not immediately respond to a request for comments.

The talks come at a time when multiple domestic steelmakers, such as JSW Steel and SAIL, are also in talks with the landlocked nation to import coking coal, an essential ingredient for making steel.

Separately, the source said India is exploring lithium in the Himalayan region of Jammu and Kashmir, and expects it to be ready to be auctioned in two months.

Beyond domestic borders, India is exploring critical minerals in Russia, Mongolia, Chile and Zambia, the source added.

The government has launched multiple auctions of critical minerals as a part of its push toward cleaner energy alternatives and also plans to offer financial incentives for extraction of such minerals.

(By Neha Arora; Editing by Bill Berkrot)

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