NEW DELHI, Nov 28 (Reuters) - India is in talks with

Mongolia to set up a preliminary pact that will focus on mineral

shipments between the two Asian nations, an Indian government

source with direct knowledge of the developments said on

Thursday.

"The pact with Mongolia will focus on transit of minerals"

such as coal and copper, said the source, who did not want to be

identified as the deliberations are not public.

The federal mines ministry did not immediately respond to a

request for comments.

The talks come at a time when multiple domestic steelmakers,

such as JSW Steel and SAIL, are also in

talks with the landlocked nation to import coking coal, an

essential ingredient for making steel.

Separately, the source said India is exploring lithium in

the Himalayan region of Jammu and Kashmir, and expects it to be

ready to be auctioned in two months.

Beyond domestic borders, India is exploring critical

minerals in Russia, Mongolia, Chile and Zambia, the source

added.

The government has launched multiple auctions of critical

minerals as a part of its push toward cleaner energy

alternatives and also plans to offer financial incentives for

extraction of such minerals.