ID :
96187
Mon, 12/21/2009 - 18:03
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http://m.oananews.org//node/96187
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SOUTHGOBI MAY SPEND $800 MILLION ON MONGOLIAN OUTPUT
Ulaanbaatar, /MONTSAME/ SouthGobi Energy Resources Ltd., a Canada-based coal producer operating in the southern deserts of Mongolia, plans to spend as much as $800 million in the next three years to increase output and supply customers in China, the Bloomberg reports on Monday.
According to the Bloomberg, the Toronto-listed company aims to boost its coal production in the Gobi desert by more than sixfold to 8 million metric tons by 2012, Chief Executive Officer Alexander Molyneux said at a media briefing on Dec. 10 at the Ovoot Tolgoi mine, about 950 kilometers (590 miles) south of the capital Ulan Bator. SouthGobi, 79 percent-owned by Ivanhoe Mines Ltd. , embargoed the release of information at the press conference until today.
Ovoot Tolgoi is about the size of Paris and lies in one of the most sparsely populated areas in the world. The mine started production this year to supply power producers and steelmakers in the fastest-growing major economy. At least $500 million is needed for SouthGobi’s development, which includes building a 40-kilometer railway track to the Chinese border, Molyneux said.
“The increases in production talked about by the company are executable and achievable,” said Alisher Djumanov , managing partner of Singapore-based Eurasia Capital Management, which has about $100 million in investments in Central Asia and Mongolia, mainly in natural resources. “Developing a rail link to the border is a good way to reduce overheads. One of the key issues they have is how to get their products to customers in China.”
This year Ovoot Tolgoi produced 1.2 million tons of coal, currently carried by truck across arid dirt tracks to rail links in the Chinese province of Inner Mongolia, Molyneux said. The mine has 114.1 million tons of reserves, according to SouthGobi.
S.Batbayar
17.45
According to the Bloomberg, the Toronto-listed company aims to boost its coal production in the Gobi desert by more than sixfold to 8 million metric tons by 2012, Chief Executive Officer Alexander Molyneux said at a media briefing on Dec. 10 at the Ovoot Tolgoi mine, about 950 kilometers (590 miles) south of the capital Ulan Bator. SouthGobi, 79 percent-owned by Ivanhoe Mines Ltd. , embargoed the release of information at the press conference until today.
Ovoot Tolgoi is about the size of Paris and lies in one of the most sparsely populated areas in the world. The mine started production this year to supply power producers and steelmakers in the fastest-growing major economy. At least $500 million is needed for SouthGobi’s development, which includes building a 40-kilometer railway track to the Chinese border, Molyneux said.
“The increases in production talked about by the company are executable and achievable,” said Alisher Djumanov , managing partner of Singapore-based Eurasia Capital Management, which has about $100 million in investments in Central Asia and Mongolia, mainly in natural resources. “Developing a rail link to the border is a good way to reduce overheads. One of the key issues they have is how to get their products to customers in China.”
This year Ovoot Tolgoi produced 1.2 million tons of coal, currently carried by truck across arid dirt tracks to rail links in the Chinese province of Inner Mongolia, Molyneux said. The mine has 114.1 million tons of reserves, according to SouthGobi.
S.Batbayar
17.45
