Nov 13 Coal miner SouthGobi Resources Ltd
, caught in a dispute with the Mongolian
government that has closed its only producing mine, reported a
quarterly loss and warned operations would likely remain
suspended in the fourth quarter.
The Mongolian government suspended the mining license of the
company, which operates the Ovoot Tolgoi coal mine, in April
following a bid by Chinese state-owned Chalco
Chalco dropped its $926 million bid
for a majority stake in SouthGobi in early September in the face
of stiff political opposition.
Vancouver-based SouthGobi said on Tuesday that it could not
estimate production volumes, sales volumes and pricing for 2012.
The company recorded a net loss of $54.6 million, or 30
cents per share, in the third quarter, compared with a net
income of $55.9 million, or 31 cents per share, a year earlier.
Revenue fell 95 percent to $3.3 million.
SouthGobi has been struggling with a churn at its top since
the failed Chalco bid. It hired Ross Tromans from Rio Tinto Coal
Australia as chief executive in September, after firing the
former CEO, chief operating officer. The chief financial officer
resigned last week.
SouthGobi's shares, which have lost 67 percent value since
the Chalco bid, closed at C$2.14 on the Toronto Stock Exchange