The Globe and Mail / The Associated Press: SouthGobi to stop Mongolian coal production amid concern over Chinese takeover

Shares in SouthGobi Resources Ltd. fell nearly 20 per cent Tuesday after the company said it will stop production at its Mongolian coal mine this month amid a controversial Chinese takeover bid for the Canadian mining company. Operations at the Ovoot Tolgoi Mine “will be entirely curtailed” as of the end of this quarter, SouthGobi Resources Ltd. said in a statement through the Hong Kong stock exchange. It cited weak market conditions and regulatory issues. “With the difficult conditions of the second quarter and the uncertainty regarding how the third quarter may evolve, the company cautions that at this time sales volumes, pricing and production volume outcomes for the full year of 2012 cannot be estimated,” SouthGobi said in a statement. To read the full article, click hereSouthGobi to stop Mongolian coal production amid concern over Chinese takeover

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