China encourages mining co-op with Mongolia

BEIJING -- 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.