Mongolian coal mine SouthGobi to halt production despite China effort


AP

BEIJING — The operator of a Mongolian coal mine says its production will stop, adding to uncertainty for a Chinese effort to acquire the company.

SouthGobi Resources Ltd. said Tuesday that output at its main Ovoot Tolgoi mine will be curtailed by the end of this quarter. It cited a weak market and regulatory issues.

SouthGobi said previously that Mongolian authorities asked for production to be suspended while they reviewed a plan by a Chinese government-owned company to acquire a majority stake in SouthGobi. Mongolia has profited from selling coal, copper and other minerals to China but Mongolians are uneasy about being dominated economically by their giant neighbor.