Chalco Will Purchase Ovoot Tolgoi by August 3

Jul 5 • News • 605 Views • No Comments on Chalco Will Purchase Ovoot Tolgoi by August 3

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International media has been reporting that Chinese are ready to die to own Mongolian strategic deposits.

Chinese state-owned Chalco has been postponing the purchase of 60% of controlling shares of South Gobi Sands from Ivanhoe Mines. Then the two companies held a meeting 2 days ago where they extended their purchase negotiation until August 3, 2012 and even declared that the companies will do their best to get the permission from the Government of Mongolia according to the newly passed law on foreign investment.

As soon as the news was spread through global news and media, the share price of South Gobi Resources which was continuously falling in the past 4 months, sharply increased by 4.48% on the HK Stock Exchange. Chalco has announced to invest $ 926 million for this purchase deal. South Gobi Sands owns Ovoot Tolgoi, Tsagaan Tolgoi and Sumber deposit whose total coal resource is 600 million tons.

In case the purchase deal successfully ends for Chalco, Mongolian coal export will be directly and immediately affected.

While Mongolians are busy with Naadam, investors are hurrying to handled this issue by getting the permission from the Government. The only step the MRAM took was the suspension of the licenses. Now whether the purchase is agreed or not will depend only on yet-to be-established Government.

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