Mongolian coal mine SouthGobi to halt production despite China effort
June 27, 2012, 11:37 am TWN
BEIJING -- The operator of a Mongolian coal mine says its production will stop, adding to uncertainty for a Chinese effort to acquire the company.
SouthGobi Resources Ltd. said Tuesday that output at its main Ovoot Tolgoi mine will be curtailed by the end of this quarter. It cited a weak market and regulatory issues.
SouthGobi said previously that Mongolian authorities asked for production to be suspended while they reviewed a plan by a Chinese government-owned company to acquire a majority stake in SouthGobi.
Mongolia has profited from selling coal, copper and other minerals to China but Mongolians are uneasy about being dominated economically by their giant neighbor.