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China invests in Mongolia miner

China invests in Mongolia miner

China's main sovereign wealth fund is investing US$500 million in a Canada-based company that mines coal in Mongolia, expanding its multibillion-U.S. dollar global shopping spree for resource assets.
China Investment Corp. is investing in a 30-year secured debenture issued by SouthGobi Energy Resources Ltd., CIC said in a statement yesterday. It said the instrument is convertible to common equity.
CIC manages a portion of Beijing's foreign reserves and has made a string of purchases of oil, mining and other resource assets in hopes of profiting from future demand in China and elsewhere.
SouthGobi's majority owner is Canada's Ivanhoe Mines Ltd. Its flagship mine, Ovoot Tolgoi, is in southern Mongolia near the Chinese border and sells coal to customers in China.


Updated : 2021-08-03 08:31 GMT+08:00