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.
Contacts:
Mongolia:
Altanbagana Bayarsaikhan
SouthGobi Sands LLC (Mongolia)
+976 9910 7589
Altanbagana.Bayarsaikhan@southgobi.com
www.southgobi.com
Hong Kong:
Joseph Lo
Brunswick Group (Hong Kong)
+852 9850 5033
Hong Kong:
Joanna Donne
Brunswick Group (Hong Kong)
+852 9221 3930
southgobi@brunswickgroup.com