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SouthGobi Resources (SGQRF.PK) says it resumed operations at its flagship Ovoot Tolgoi coal mine...

SouthGobi Resources (SGQRF.PK) says it resumed operations at its flagship Ovoot Tolgoi coal mine in Mongolia, where production has been curtailed since June because of weak demand and customer uncertainty about its future. It says signs of improvement in coal markets justify the restart.
Comments (6)
  • It's not the weak demand that caused the curtailment, it's the Mongolian Government who are not to be trusted when entering contracts. Anyone who has stock holdings in any company who is interested in or negotiating to do business with Mongolia should contact their respective Officers and Board of Directors to tell them to stay away from doing business with Mongolia until their Government learns how to abide by their contracts. Sorry, but the Mongolian Government can not be trusted as a business partner until they straighten their mess out.
    22 Mar 2013, 10:38 AM Reply Like
  • Jayinbaker is 100% correct here - the government of Mongolia pulled SGQRR's license and forced the lead council to stay in the country for months in what amounts to an attempt by the GOM to grab a bigger share of the huge Olyu Tolgoi copper/ gold deposit RioTinto is developing with TRQ resources. The GOM signed an agreement after years of negotiation. The agreement gives them about 71% of the money coming from this deposit but they still want more. GOM can not be trusted and if not for the depth of Rio Tinto's capabilities and experience in these matters, GOM would have stole this deposit by now.
    22 Mar 2013, 01:27 PM Reply Like
  • Lead council Sarah Armstrong was forced to stay in the country because, the former head of the Mineral Resources Authority D.Bathuyag abused his power and reissued five suspended mining licenses.http://bit.ly/10wi5Go As far as we know Justin Kapla still can not leave the country. http://bloom.bg/XsMNN7 We can only speculate on what is going on in mongolia.
    23 Mar 2013, 08:21 AM Reply Like
  • this is huge!!
    22 Mar 2013, 10:54 AM Reply Like
  • It would be informative for an objective source to compile the (long?) list of 'newly emerging countries" that drastically revised their newly minted foreign investment attractive mining laws shortly after the foreigners found a mineral elephant in their back yards.
    22 Mar 2013, 12:34 PM Reply Like
  • We have been here before and the contract was held in place. I hope, because it is not certain, that the Mongolian Govt. realizes that if they push Rio too hard they will abandon the project. Furthermore they will never get another nickel in foreign investment. All they have are their mineral resources to bring them out of the middle ages.This is all political chest beating and sorting out who gets greased when the deal is approved again.
    23 Mar 2013, 07:52 AM Reply Like
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