SEOUL, Feb. 6 (Yonhap) -- North Korea and China are expected to sign an agreement on joint development of the North's underground resources in the middle of this month in Beijing, a source here said Sunday.

   "It has been learned that Pyongyang and Beijing are expected to conclude a deal to jointly develop North Korea's underground resources on Feb. 15, one day before the birthday of North Korean leader Kim Jong-il," said the source, noting the accord will be signed in Beijing between China's Commerce Ministry and the North's Joint Venture Investment Committee.

  


"Specifically, the two sides may agree to jointly develop natural resources such as gold, anthracites and rare earths under the bilateral deal. Following the agreement, the two countries are likely to establish a joint venture company in Hong Kong," said the source, asking to remain anonymous.

   Trade between North Korea and China reached US$3.06 billion in the first 11 months of last year, which marked a rise of 9.6 percent from the 2008 annual volume of $2.7 billion. Mineral resources like coals and iron ores account for over 30 percent of the North's exports to China.

   ycm@yna.co.kr
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