- Business
- SouthGobi Resources Ltd. operates as an integrated coal mining, development and exploration company focused on metallurgical and thermal coal production in Mongolia. The company owns and operates the flagship Ovoot Tolgoi open-pit mine in the Umnugobi Aimag, which produces premium semi-soft coking coal, standard semi-soft coking coal, premium thermal coal, standard thermal coal and processed coal through its wet washing facility (annual capacity of 1.7 million tonnes) and dry processing facility (annual capacity of 5.4 million tonnes); it holds additional development projects at the Soumber Deposit (Central Soumber, East Soumber, Biluut, South Biluut and Jargalant fields) and Zag Suuj Deposit, with total coal resources of approximately 760 million tonnes and Ovoot Tolgoi reserves of 82 million tonnes. SouthGobi engages in coal mining, processing, transportation via its paved highway to Ceke Port and investments in Shivee Khuren-Ceke railway, and trading, primarily selling to customers in China through its major sales network at Ceke Port in Inner Mongolia; subsidiaries include SouthGobi Sands LLC, SGQ Coal Investment Pte. Ltd., SouthGobi Resources (Hong Kong) Limited and various Inner Mongolia entities. Founded in 2002 as a Canadian company and formerly known as SouthGobi Energy Resources Ltd. until its name change in May 2010, SouthGobi maintains headquarters in Kowloon, Hong Kong, with primary listing on the Hong Kong Stock Exchange (1878.HK) and secondary listing on the TSX Venture Exchange (SGQ). Recent developments include a Build-Operate-Transfer Agreement entered into by subsidiary SouthGobi Sands LLC on July 15, 2024; a March 2025 Deferral Agreement with JD Zhixing Fund L.P. involving subsidiaries SouthGobi Sands LLC and SGQ Coal Investment Pte. Ltd.; primary listing shift to the Hong Kong Stock Exchange with TSX Venture Exchange listing effective April 17, 2023; and strong operational growth with Q2 2025 coal sales of 2.96 million tonnes (up 147% year-over-year) and raw coal production of 3.91 million tonnes (up 95%).