China, Mongolia Sign Oil Deal
Dec. 11, 1998
BEIJING (AP) _ President Nachagyn Bagbandy of Mongolia began a six-day official visit to China on Friday, and the two countries signed a pact pledging Chinese help to build his country's first oil refinery.
Bagbandy, who is making his first visit to China since being elected last year, met with President Jiang Zemin and other top Chinese leaders to discuss trade, cross-border smuggling and other issues.
The $39.7 million refinery agreement calls for Chinese and Mongolian oil companies to build the facility near Dzuunbayan in southeastern Mongolia, the official Xinhua News Agency said.
The refinery is to process 500,000 tons of oil annually, while another 500,000 tons is to be exported to China beginning next October. China's Huafu Oil Co. is to have a 70 percent stake in the refinery.