ProactiveInvestors: SouthGobi to stop coal production on Chinese takeover concerns

SouthGobi Resources says 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 said in a statement citing weak market conditions and regulatory issues. SouthGobi also cautioned on its outlook for the full-year in terms of coal shipments. “At this time SouthGobi believes it is difficult to estimate coal sales volumes and pricing for the third quarter of 2012,” the company said in a statement. “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.” To read the full article, click hereSouthGobi to stop coal production on Chinese takeover concerns

This entry was posted in Mongolia News. Bookmark the permalink.

Comments are closed.