US moves closer to Mongolia to access country's minerals

By Al Mayadeen English
Source: News websites
4 Aug 2023 11:24
1 Shares

The United States gains access to Mongolia's copper and rare earth riches, as well as the possibility of drone freight delivery.

Vice President Kamala Harris, (right), talks during her meeting with Mongolia's Prime Minister Luvsannamsrain Oyun-Erdene, (left), in her ceremonial office on the White House complex in Washington, Wednesday, Aug. 2, 2023. (AP)

The Biden administration seeks to diversify sustainable energy supply chains and lessen reliance on commodities processed in China by pursuing mineral-rich Mongolia.

On August 2, US Vice President Harris and Mongolian Prime Minister Luvsannamsrain Oyun-Erdene, met in the latest in a series of US engagements with the country, including vital minerals and China. "The Vice President and the Prime Minister will discuss our economic and commercial relationship, including Mongolia’s economic resilience; future cooperation in outer space, including civil and commercial cooperation; addressing the climate crisis; and a range of regional and global issues, including China and Russia," White House National Security spokesperson John Kirby told Semafor.

The two will also “underscore the importance of strong democratic institutions and rule of law,” he said.

The United States is scouring the globe for crucial minerals required to construct electric vehicle batteries, powerlines, undersea cables, and other critical aspects of the energy transition. On that note, Mongolia's mining industry is thriving, accounting for over a quarter of the country's GDP.

“Most of its exports go to China at the moment and the U.S. … would like to get some of those resources for itself,” said Noah Gordon, a fellow at the Carnegie Endowment for International Peace.

“You can’t have an energy transition without critical minerals.”

State Department officials in late June traveled to Mongolia to meet with officials and private sector representatives and signed a memorandum of understanding on critical mineral supply chains in the Pacific.

White House Joint statement

Under the guise of promoting cultural relations between the US and Mongolia, a White House official revealed that Harris and Oyun-Erdene will sign an "Open Skies" deal, which would allow US government-funded flying on Mongolian airlines.

"The United States and Mongolia are partnering on joint responses to the 21st century’s most difficult economic challenges, exploring opportunities to increase trade and investment through bilateral cooperation and regional trade mechanisms."

The statement adds that "The United States expressed continued support for the strengthening of Mongolia’s democracy through diversifying its economy, bolstering energy security, enhancing food security, and supporting the transition to renewables."

Yet again, the US uses democracy to mask its initial plans.

Oyun-Erdene will return to Mongolia's capital, Ulaanbaatar, on Saturday after signing agreements aimed at easing US access to Mongolia in order to kick-start US investment in the country. They include an open skies deal that will prepare the way for direct flights between the two nations to begin next year, as well as a road map for economic cooperation that Oyun-Erden sees as critical to luring US corporations to engage in the country's mining sector.

He stated during his discussion with Harris that he sees the agreements as the first step toward broader projects, adding, “I emphasized the importance of U.S. investment and involvement with mega projects in Mongolia,” highlighting his hopes for US investment to exploit the country’s rare earths and copper reserves.

Oyun-Erdene cited Anglo-American mining firm Rio Tinto's massive Oyu Tolgoi project, which boasts the world's largest known gold and copper deposits, and France's pursuit of a billion-euro uranium mine deal as examples of the scale of projects it wants US firms to pursue in Mongolia.