Financial Post: Mongolia suspends SouthGobi licenses

In Mongolia, almost anything Chinese is viewed with suspicion — including deals with Canadian mining companies. A new political debacle in the land-locked Asian nation has thrown a wrench into plans to transfer control of Canadian miner SouthGobi Resources Ltd. to China. On Monday, the Mongolian government announced it will suspend SouthGobi’s mining and exploration licences on the rich Ovoot Tolgoi coal mine. The announcement came out of nowhere, and SouthGobi maintained that its licenses are in good standing. According to sources, the move appears to be largely political. Earlier this month, Ivanhoe Mines Ltd. agreed to sell its 57.6% stake in SouthGobi to state-owned Aluminum Corp. of China Ltd. (Chalco). The move allows Ivanhoe to focus its resources on the US$6-billion Oyu Tolgoi copper-gold project, also in Mongolia. To read the full article, click hereMongolia suspends SouthGobi licenses

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