SouthGobi Resources Resumes Ovoot Tolgoi Mine Operations
HONG KONG, CHINA -- (Marketwire) -- 03/21/13 -- SouthGobi Resources
Ltd. (TSX:SGQ)(HKSE:1878) (the "Company" or "SouthGobi") today
announced the resumption of operations at its flagship Ovoot Tolgoi
coal mine. The Company plans to produce 3.2 million tonnes of
semi-soft coking coal over the remainder of 2013.
Production has been fully curtailed since the end of June 2012 and
the Company has used this period of halted production to adapt to the
new market environment and restructure and reposition its Mongolian
business. Operations will resume in a conservative and therefore cost
effective, cash positive and sustainable manner.
While a certain amount of volatility remains in the coal markets,
signs of improvement justify this restart of operations. The flow of
coal and sales will be carefully managed in order to react quickly to
any future changes in market conditions.
The commitment of the Company to the community it operates in also
played a key role in the decision to resume operations at the Ovoot
Tolgoi Mine. SouthGobi is aware of the vital role that the Company
can play in the lives of many Mongolian families.
SouthGobi will continue to work to improve the planning and delivery
of its operations and cost structures and in realizing its full
operating potential, will deliver better returns for all shareholders
while having a positive impact for the people of Mongolia.
About SouthGobi Resources
SouthGobi Resources is listed on the Toronto and Hong Kong stock
exchanges, in which Turquoise Hill Resources Ltd., also publicly
listed in Toronto and New York, has a 58% shareholding. Turquoise
Hill took management control of SouthGobi in September 2012 and made
changes to the board and senior management. Rio Tinto has a majority
shareholding in Turquoise Hill.
SouthGobi Resources is focused on exploration and development of its
metallurgical and thermal coal deposits in Mongolia's South Gobi
Region. It has a 100% shareholding in SouthGobi Sands, the Mongolian
registered company that holds the mining and exploration licenses in
Mongolia and operates the flagship Ovoot Tolgoi coal mine. Ovoot
Tolgoi produces and sells coal to customers in China.
Forward-Looking Statements: This document includes forward-looking
statements. Forward-looking statements include, but are not limited
to: plans to produce 3.2 million tonnes of semi-soft coking coal over
the remainder of 2013; operations will resume in a conservative and
therefore cost effective, cash positive and sustainable manner; the
flow of coal and sales will be carefully managed in order to react
quickly to any future changes in market conditions; SouthGobi will
continue to work to improve the planning and delivery of its
operations and cost structures and in realizing its full operating
potential, will deliver better returns for all shareholders while
having a positive impact for the people of Mongolia; and other
statements that are not historical facts. When used in this document,
the words such as "plan", "estimate", "expect", "intend", "may", and
similar expressions are forward-looking statements. Although
SouthGobi believes that the expectations reflected in these
forward-looking statements are reasonable, such statements involve
risks and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from
these forward-looking statements are disclosed under the heading
"Risk Factors" in SouthGobi's Management's Discussion and Analysis of
Financial Condition and Results of Operations for the year ended
December 31, 2011 which is available at www.sedar.com.
SouthGobi Sands LLC (Mongolia)
+976 9910 7589
Brunswick Group (Hong Kong)
+852 9850 5033
Brunswick Group (Hong Kong)
+852 9221 3930
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