RPT-Mongolia mine closure wipes out SouthGobi revenue

Mon Mar 25, 2013 4:35pm EDT
 
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March 25 (Reuters) - SouthGobi Resources Ltd's revenue plunged 98 percent and the coal miner reported a bigger fourth-quarter loss as its only producing mine remained shut after the Mongolian government suspended its licenses.

The company's net loss widened to $51.8 million, or 28 cents per share, from $18.9 million, or 14 cents per share, a year earlier.

Revenue fell to $1.2 million from $51.1 million a year earlier.

SouthGobi's exploration and mining licenses were suspended by the Mongolian government in April after Chinese state-owned Chalco bid for SouthGobi.

Chalco, which sought to diversify into coal, iron ore and electricity, dropped its $926 million bid in September due to stiff political opposition from Mongolia.

The company, which is now controlled by Rio Tinto Ltd , said last Thursday it had resumed operations at its flagship Ovoot Tolgoi mine in Mongolia after about nine months.