Shares of the Canadian company, SouthGobi, which is involved in mining in Mongolia, have fallen to a record low here after the Aluminum Corporation of China, Chalco, dropped its plan to buy a majority stake in the firm.
Shares of SouthGobi Resources Ltd fell more than 17 percent on Tuesday, a day after China"s Chalco said it had dropped its $926 million takeover bid for the Mongolia-focused Canadian coal miner in the face of political opposition
Turquoise Hill Resources, formerly known as Ivanhoe Mines, says the first construction phase at its sizeable 66%-held Oyu Tolgoi copper-gold project in Mongolia’s South Gobi desert is wrapping up with initial production expected to start by year-end.
It is no surprise that one of the first foreign officials on the plane to Ulan Bator last week after a new Mongolian government was finally put together after June’s election was China’s State Councillor and national security adviser Dai Bingguo.
Mongolia should seek to raise its stake in the giant Oyu Tolgoi copper and gold project, the country's new mining minister said, adding weight to concerns among foreign investors about rising resource nationalism following a June election.