Russian Energy Ministry said Chinese investors are in talks with Russian coal miners including Mechel and United Industrial Corp to develop reserves and infrastructure in Siberia and Russia Far East.

The ministry said in a statement that China hungry for coal to fuel its growing economy, also wants to participate in several projects to develop untapped reserves on the Pacific island of Sakhalin.

Mr Konstantin Alexeyev director of the ministry coal and peat industry department said in a statement that "Both sides are interested in long term supplies of coal to China. He said that issues raised during talks included Chinese participation in exploiting coal deposits, development of transport infrastructure and supplying coal for export."

He added that Russia, among the world's largest coal miners and exporters is increasingly looking to Asian markets to consume products to be mined in remote parts of Siberia and the Russian Far East.

The ministry said talks had focused on joint development of coal fields on Sakhalin and the construction of rail links and an export terminal to allow shipments from the island best known for its offshore oil and gas reserves.

The ministry said Chinese firms would also continue talks with United Industrial Corp on development of the Elegest deposit in the Russian republic of Tuva. It said Mechel, Russia's largest producer of coking coal for the steel industry would negotiate with Chinese companies on construction of transport links that would allow the export of coal from its massive Elga deposit in Yakutia.

The ministry did not name any Chinese companies.

Mr Alexeyev said Russia was also trying to attract Chinese investment to the western Siberian coal-mining region of Kemerovo and the republic of Buryatia which borders Mongolia.

The ministry said "The next round of meetings, on concrete issues of cooperation is planned in the near future."

(Sourced from Reuters)