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Wednesday, 27 October 10
CHINA AIDS RUSSIA IN DEVELOPING COAL RESOURCES - PEOPLE'S DAILY


People's Daily reported that, Russia will use 6 billion U.S. dollars in loans provided by China to develop coal resources in Sakhalin Island, Elegest of Tuva Republic and eastern Siberia, the deputy minister of the Russian Ministry of Industry and Energy announced.

The specific development projects will be revealed at the end of this year. If the development goes well, Russia is expected to be one of China's major coal suppliers, Beijing Business Today reported on Wednesday.

At present, more than 80 percent of China's energy comes from coal, mainly imported from Australia and Mongolia. While, in Russian Far East and Siberia, there are abundant coal resources and, in Elegest, the coal reserve has initially been proven to contain around 946 million tons.

China signed a "loans for coal" agreement with Russia in September to jointly develop coal resources in Russia's far eastern areas. The agreement says in the next 25 years, China will import at least 15 million tons of coal from Russia each year in the first five years and at least 20 million tons per year in the following 20 years.

Analysts believe both sides will benefit the "loans for coal" plan, and it is a reasonable way of seeking energy in the context of the devaluation of U.S. dollars, but it is not the only way.

China should import resources through a variety of means, such as joint ventures and opening markets, on the basis of mutual benefit, according to Lin Boqiang, director of the China Center for Energy Economic Research at Xiamen University.
Source: People's Daily Online
 By Liang Jun

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