Mar 22 2013
SouthGobi Resources Ltd. (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.