Mongolia's Oil Refinery: An India-Assisted Project by 2025

India is providing support to Mongolia in the construction of its inaugural oil refinery. Currently, Mongolia is entirely dependent on Russia for its energy imports. However, this refinery will enable Mongolia to meet 70% of its energy demand domestically, enhancing its energy autonomy and security.

India & Mongolia – Diverse Areas of Collaboration:

• Mining and metallurgy:
  • Mongolia is rich in resources like coking coal, copper, gold, uranium, and rare earth elements.
  • Talks are underway to import coking coal from Mongolia to India.
  • Rare earth elements are found in abundance in Mongolia’s mines.
    • These elements are crucial for the development of advanced technologies in industries like semiconductors and green mobility, which are key to India's aspirations.
• Renewable energy:
  • The vast, open land area of Mongolia, coupled with more than 270 sunny days a year, makes it an ideal location for renewable energy projects.
  • This opens up opportunities for cooperation in renewable energy fields such as solar, wind, and hydroelectricity.
• Tourism:
  • For many Mongolians, India is the land of the Buddha , and this can be leveraged to attract more tourists from Mongolia to India.
• Agriculture:
  • Mongolia's vast tracts of vacant land and abundant solar insolation make it an ideal place for agriculture. India can assist Mongolia in developing and cultivating diverse crop varieties.
• Defence:
  • India and Mongolia conduct a joint military exercise named ‘Nomadic Elephant’.
  • Cooperation between India and Mongolia in the fields of education and medical facilities can help Mongolia explore opportunities for developing facilities, research, and training centres.