Reuters: Mongolia policy worries hit SouthGobi deal

Speculation mounted on Thursday that Chinese aluminium giant Chalco’s plan to buy a majority stake of Canadian coal miner SouthGobi Resources Ltd and take control of its projects in Mongolia could be sideswiped by new Mongolian government legislation. Wary of its giant neighbor China, Mongolia looks set to enact new investment rules that would allow it to review deals involving foreign companies that have assets in Mongolia. After state-owned Chalco announced in early April its $926 million bid to gain a majority holding in SouthGobi from Australia’s Ivanhoe Mines, the Mongolian government said it would to suspend SouthGobi’s licenses for its several large coal projects, which are close to the Chinese border. It then said it would introduce new foreign investment legislation. To read the full article, click hereMongolia policy worries hit SouthGobi deal

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