US and Mongolia strengthen cooperation on rare earths

Mongolia has rich deposits of rare earths and copper, which are vital to high-tech applications and President Joe Biden's efforts to "electrify" the auto market to combat climate change.

In Washington DC, Prime Minister Oyun-Erdene met with US Vice President Kamala Harris and signed an “Open Skies” civil aviation agreement, along with commitments to strengthen economic cooperation.

“We discussed the possibility of cooperation in the exploitation of rare earths, critical minerals, including copper,” Oyun-Erdene said in an interview with Reuters.

According to Mr. Oyun-Erdene, cooperation with the US on rare earths and critical minerals is ongoing and will be further enhanced under a memorandum of understanding signed last June between the Mongolian Ministry of Mines and Heavy Industry and the US Department of State.

Mongolia hopes to have good relations with neighboring China, which controls most of the world's rare earth mines, as well as the United States, but Prime Minister Oyun-Erdene warned that countries like Mongolia, located between China and Russia, would be affected if superpower competition intensifies.

“I fear that the new Cold War will be very different and much more difficult than the first Cold War. We cannot afford a new Cold War situation,” Oyun-Erdene said, citing rapid technological change and global issues such as climate change.

Mr. Oyun-Erdene also called on major powers to be more responsible to avoid serious negative impacts on many countries around the world, especially the international economy.

Because of its border with Russia, Mongolia has suffered from the fallout from the conflict in Ukraine that erupted last year, including inflation in commodities such as explosives for mining, according to Mr. Oyun-Erdene.

Prime Minister Oyun-Erdene added that Mongolia is in talks with Tesla CEO Elon Musk about possible investment and cooperation in the electric vehicle and space sectors, but that Oyun-Erdene will not meet the tech billionaire during his visit to the United States.

During his trip to the US, Prime Minister Oyun-Erdene plans to visit the NASA space agency and is also expected to meet with US Secretary of State Antony Blinken.

According to Tin Tuc Newspaper