SouthGobi drops plan to sell Mongolia coal deposit
Aug 29 (Reuters) - SouthGobi Resources Ltd said the proposed sale of the Tsagaan Tolgoi thermal coal project in Mongolia to Australian-listed Modun Resources Ltd has been cancelled.
The Mongolia-focused coal miner said it was evaluating options for the deposit, which remained non-core to its operations. The deal value was estimated at $30 million.
SouthGobi owns large coal projects close to China, which has a huge demand for energy and minerals.
Aluminum Corp of China Ltd, better known as Chalco, announced a $926 million bid for a controlling interest in SouthGobi in April.
SouthGobi faced political opposition within Mongolia, which is growing wary about China's increasing presence in its mining sector. The company recently said it expects Chalco to drop the takeover offer.
SouthGobi shares closed at C$3.00 on the Toronto Stock Exchange on Tuesday.
The Mongolia-focused coal miner said it was evaluating options for the deposit, which remained non-core to its operations. The deal value was estimated at $30 million.
SouthGobi owns large coal projects close to China, which has a huge demand for energy and minerals.
Aluminum Corp of China Ltd, better known as Chalco, announced a $926 million bid for a controlling interest in SouthGobi in April.
SouthGobi faced political opposition within Mongolia, which is growing wary about China's increasing presence in its mining sector. The company recently said it expects Chalco to drop the takeover offer.
SouthGobi shares closed at C$3.00 on the Toronto Stock Exchange on Tuesday.
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