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SouthGobi more than doubled 2013 output

World Coal,

SouthGobi Resources, the Mongolian coal producer controlled by Rio Tinto, more than doubled its output in 2013 after resuming operations at its Ovoot coal mine.

Production rose to 3.06 million t last year, from 1.33 million t in 2012, according to SouthGobi operating results.

The company resumed operations at the Ovoot Tolgoi coal mine in March 2013, after mining was halted in June 2012, on uncertainty caused by a takeover bid and deteriorating market conditions.

SouthGobi expects sales volumes in the first quarter of 2014 to decrease compared to the final quarter of last year. This is generally the case due to the seasonal holidays of Mongolian Tsagaan Sar and the Chinese New Year, which result in border closures at the Shivee Khuren-Ceke crossing on the Mongolian-China border, as well as a general decrease in the level of economic activity at the crossing.

The rate of production in Q1 2014 will be paced in the first quarter of 2014 will be paced to meet contracted sales tonnages.

Edited from various sources by Katie Woodward

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