SouthGobi Resources is a Canadian coal mining company listed on the Hong Kong Stock Exchange and Toronto Stock Exchange . The company's primary asset is a coal mine and development projects of coal assets in Mongolia .
15-577: A proposed acquisition of the company by a Chinese state owned mining firm in 2012 was thwarted by resource nationalism in Mongolia. The blocked deal led to a chain of events that negatively affected the Mongolian economy for the rest of the decade. Quickly in response to the announced deal, Mongolia passed an investment review law in Mongolia (shortly repealed after enactment) that while only briefly in force stunted for years foreign investor confidence in
30-586: A different company called Turquoise Hill Resources , which also owned shares in SouthGobi. In January 2020, SouthGobi LLC, a subsidiary of SouthGobi Resources, donated ₮ 80,000,000 to Manidbadar General Education School , a school in Noyon soum , Umnugovi province . In June 2021, SouthGobi's CEO was awarded the Mongolian Medal of Friendship , and the company's VP of Public Relations was also awarded
45-453: A result, less than six months later the government cancelled the contract. Governments that have adopted elements of resource nationalism include Bolivia under Evo Morales , Argentina under Cristina Fernández de Kirchner , and Venezuela under Hugo Chávez . This economic term article is a stub . You can help Misplaced Pages by expanding it . Umnugovi province Ömnögovi ( Mongolian : Өмнөговь Ömnögovǐ , South Gobi )
60-511: Is an aimag (province) of Mongolia , located in the south of the country, in the Gobi Desert . Ömnögovi is Mongolia's largest aimag. The capital is Dalanzadgad . The province is rich in mineral deposits, including gold and copper . Agriculture is of minor importance. Vegetables are grown in some oases -for example, in Dal near Dalanzadgad. As the aimag has various sights to offer, tourism
75-543: Is gaining importance. Ömnögovi includes several well known tourist areas, including the Flaming Cliffs , Gobi Gurvansaikhan National Park and Khongoryn Els - The Singing Sand Dunes . The Dalanzadgad Airport (ZMDZ/DLZ) has one concrete runway. It is served by regular domestic flights from and to Ulaanbaatar . Religion in Ömnögovi (2009) According to a 2009 survey, 73.5% of the residents of Ömnögovi are Buddhists, 2.9% are Christians, 23.3% do not identify with
90-400: Is mainly enforced as an economic policy in an authoritarian or populist style by governments that rely on state ownership or control of natural resources located within their territories to advance political, social or industrial objectives. This emphasizes that resources belong to the people of the country in question first and foremost, and for some resource nationalists, that state employment
105-627: Is the best manager of resources against privatization. A recent tide of resource nationalism appeared during the period of economic liberalisation in Latin America in the 1990s, with populations and governments looking for independence of the country in terms of export and resources. An example includes the Cochabamba Water War , a series of protests against privatization of the city's water supply that took place in Bolivia. As
120-551: The China Investment Corporation funded a $ 500 million convertible debenture issued by SouthGobi. In March 2010, $ 250 million of the convertible debenture was converted into SouthGobi common shares. This move lowered the interest held by Ivanhoe Mines (later renamed Turquoise Hill Resources ) to 57.6%. By 2012, Ivanhoe Mines had come under the influence of its largest shareholder Rio Tinto , which wanted to sell non-core assets, which included SouthGobi. In
135-588: The China Investment Corporation with 23.8%; Novel Sunrise with 17.0%, and Voyage Wisdom with 9.5%. Novel Sunrise is 100% controlled by China Cinda Asset Management . Both the China Investment Corporation and China Cinda Asset Management are central state owned enterprises of China. The company was founded in 2002. SouthGobi listed on the Toronto Stock Exchange in 2007 and Hong Kong Stock Exchange in 2010. In 2009,
150-454: The Mongolian government targeting SouthGobi and its personnel also took its toll. During and after the sale process, the Mongolian government jailed SouthGobi employees and suspended its mining license for several months. In October 2012, its chief legal counsel Sarah Armstrong was detained and prevented from leaving the country. The Mongolian government alleged the company management had bribed Mongolian state officials. The allegations resulted in
165-640: The country, which had been a darling in emerging markets investment circles before 2012. After the blocked deal, SouthGobi would itself face an equally dramatic fall from grace as the Mongolian economy . By 2015, the company lost 98% of its once sky high $ 3 billion Canadian dollar market capitalization that had peaked in 2012. The company is publicly listed on the Stock Exchange of Hong Kong (HKEX: 1878) and Toronto Stock Exchange (TSX: SGQ). Its principal shareholders according to its 2018 annual report are
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#1732802059180180-623: The effect of terrifying foreign investors, resulting in a large slump in investment to Mongolia that continued for several years after 2012. SouthGobi would dramatically lose value after the blocked sale. The company had been valued at $ 3 billion Canadian dollars at its high point in 2012. In March 2015, Novel Sunrise Investments , a private Chinese firm from the Novel Group of companies, became SouthGobi's largest shareholder. Furthermore, Novel Sunrise also appointed three members to SouthGobi's board. Novel Sunrise also separately bought shares in
195-647: The same year, Ivanhoe Mines attempted to sell its 57.6% of SouthGobi to Aluminum Corporation of China Limited (Chalco) for $ 889 million. The attempt announced in April 2012 failed. Chalco called off the deal in September 2012 after estimating "chances for obtaining approval from the Mongolian government were slim". Negative public opinion in Mongolia based on resource nationalism opposed the sale. The masses did not want majority ownership by foreign state-owned enterprises of companies in their mining industry. Harassment by
210-578: The shutdown and search of SouthGobi headquarters in Mongolia by a Mongolian anti-corruption agency. In May 2013 Justin Capla, another company executive, was prosecuted and later sentenced to prison for five years. He was later pardoned by President Tsakhiagiin Elbegdorj in February 2015. The aggressive actions of the Mongolian government against SouthGobi succeeded in blocking the deal with Chalco but had
225-843: The title of Honored Lawyer of Mongolia . The company holds the Ovoot Tolgoi Mine and development projects at the Soumber Deposit and Zag Suuj Deposit. Resource nationalism Resource nationalism is the tendency of people and governments to assert control over natural resources located within their territory. As a result, resource nationalism conflicts with the interests of multinational corporations . The approach of peak oil during price fluctuation leads many governments to take ownership or control of fossil fuel reservoirs for strategic and economic reasons. Resource nationalism applies to resources such as metals, and in less developed nations, mining investments. It
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