(EnergyAsia, September 14 2012, Friday) — Mongolian coal miner SouthGobi Resources Ltd fired CEO Alexander Molyneux on September 12 as the fall-out continues over a failed takeover attempt of the company by Aluminum Corp of China Ltd or Chalco.

Last week, state-owned Chalco called off its C$925 million takeover bid after months of trying unsuccessfully to persuade the Mongolian government that the deal would not threaten the interest of the resource-rich landlocked country.

The new CEO is Ross Tromans, who last marketed coal for UK’s Rio Tinto Group, which controls SouthGobi through its ownership of Vancouver’s Turquoise Hill Resources Ltd. Mr Tromans has around 30 years of selling and marketing coal in Asia and North America.

Mr Molyneux appears to have paid the ultimate price for failing to anticipate the strong backlash from the Mongolian government in response to Chalco’s April 2 offer to acquire Toronto and Hong Kong-listed SouthGobi for a 60% premium over its last traded price.

Mongolia’s Parliament followed up its protests by quickly passing a law restricting foreign state-owned companies from controlling strategic assets which includes the country’s mines and natural resources. As customers backed away from committing to term deals, SouthGobi was unable to operate normally and was forced to halt all mining in Mongolia on June 30.

In announcing the change of CEO, SouthGobi said deputy chairman Sean Hinton will manage the transition and will lead the company in the interim.

Chairman Kay Priestly said: “Ross brings a wealth of industry insight to SouthGobi after almost three decades in the coal and energy sector. The board is working with Ross and Sean to ensure a smooth transition as we focus on strengthening the company’s core business performance. We are committed to operating SouthGobi and realising Ovoot Tolgoi’s production potential.”