ULAN BATOR, August 25 (RIA Novosti) - Russia and Mongolia signed a deal on Tuesday during President Dmitry Medvedev's visit to the country to set up a joint venture to mine and process uranium.
"We have signed an inter-governmental agreement to establish a joint venture to develop, produce and process uranium," the head of Russia's state nuclear corporation Rosatom, Sergei Kiriyenko, told reporters.
"Russia is the first country with which Mongolia has signed a deal on cooperation in uranium activities. This is an important political signal."
Kiriyenko said Russian investment in the project would reach "hundreds of millions of dollars," and that the company will be established before the end of this year, on a parity basis, in line with a March 17 bilateral agreement. However, Kiriyenko said Japan could also join the project.
He said the firm would be focusing on the Dornod deposit and the East Gobi fields in Mongolia.
Dordon, which was prospected with the help of Soviet experts, is believed to contain half of the country's overall uranium reserves, estimated at 62,000 metric tons.
Kirilenko said the Dordon deposit was also of interest as it is located only 200 km (124 miles) from Russia's Priargun uranium ore mining and processing factory, which accounts for over 90% of national uranium output.
"This would allow us to create a single infrastructure and attract our experts," he said.
Medvedev held a one-on-one meeting on Tuesday with his Mongolian counterpart, Tsakhiagiin Elbegdorj. The visit is expected to yield a series of other bilateral deals, including on development of strategic cooperation.
Medvedev is accompanied on his visit by Foreign Minister Sergei Lavrov and the heads of several companies, including the state Russian Technologies (Rostekhnologii) corporation and Russian Railways.
Russian Premier Vladimir Putin visited Mongolia in May. Mongolian premier, Sanjaagiin Bayar, then said the country was also interested in cooperation in nuclear technology development.
