(EnergyAsia, September 3 2012, Monday) — Canada’s SouthGobi Resources Ltd has announced the cancellation of the proposed US$30 million sale of its Tsagaan Tolgoi thermal coal project in Mongolia to Australia’s Modun Resources Ltd by mutual consent.
The Mongolia-focused coal miner said it will evaluate options for the deposit, which are non-core to its operations.
Listed on the stock exchanges of Toronto and Hong Kong, SouthGobi Resources remain the focus of a proposed takeover by Aluminum Corp of China Ltd or Chalco.
SouthGobi owns four significant coal projects in Mongolia, namely, the producing Ovoot Tolgoi mine, and three development projects in Soumber, Zag Suuj and Ovoot Tolgoi. The company also holds mineral exploration licences in Mongolia.