S. Korea, Mongolia strike energy deal

SEOUL, Dec. 12 (Yonhap) -- South Korea and Mongolia agreed to jointly develop coalbed methane (CBM) gas that could lead to closer cooperation on resources down the road, the government said Friday.
The memorandum of understanding (MOU) signed in the Mongolian capital of Ulan
Bator calls for concerted efforts to develop the gas at the Taran Tolgi coal mine
in southern Mongolia, the Ministry of Knowledge Economy said.
CBM, created by buried coal, has similar characteristics as natural gas and
causes less pollution compared to coal and oil. Taran Tolgi, located 540
kilometers south of the Mongolian capital, is estimated to hold 5.07 billion tons
of coal.
"The MOU signed between Korea Gas Corp. and Mongolia's Ministry of Mining and
Energy is significant because it could allow similar agreements in uranium,
copper and other resources," a government official said.
Mongolia has many untapped mineral deposits that could benefit resource-poor
South Korea.
The deal also calls for the two sides to set up a dimethyl ether research
laboratory that can help produce relatively clean fuel for diesel and petrol
engines.
yonngong@yna.co.kr
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