Berlin - Germany wants to develop relations with Mongolia, Chancellor Angela Merkel said Thursday after talks with Mongolian Prime Minister Sanj Bayar in Berlin.

She told a news conference there was scope for expanding economic ties with the resource-rich Central Asian nation.

Bayar, who earlier met Economics Minister Karl-Theodor zu Guttenberg, said his visit to Germany also included talks with German business leaders in the steel, banking and rail sectors.

On the fringe of the visit, representatives of the two countries signed an agreement to train Mongolian managers in Germany.

German State-run rail concern Deutsche Bahn signed a deal with Mongolia's Energy Resources LLC for a rail link transporting coal from the Ukhaa Khudag mining project. (dpa)