SouthGobi Resources Ltd (SouthGobi) is a coal mining, exploration and development company. The company primarily owns and operates the Ovoot Tolgoi mine in Mongolia. It also has 100% rights to the Zag Suuj Deposit and the Soumber Deposit. SouthGobi operates through a single segment namely, Coal Division. The company’s Ovoot Tolgoi mine is in the southwest corner of the Umnugobi Aimag, Mongolia. The mine produces premium and standard semi-soft coking coal products. The Ovoot Tolgoi mine has two areas, namely the Sunrise towards the east and Sunset Pits towards the west. It is an open-pit coal mine. It sells a portion of its coal at the mine gate to Chinese customers, while selling the remaining coal inventory to China through its Chinese subsidiaries at the stockyards in Ceke or certain designated locations in China. Marketable products from the Ovoot Tolgoi Mine primarily include the SouthGobi standard (Standard) and SouthGobi premium (Premium) semi-soft coking coal products. Some of the higher ash content product is washed and sold as semi-soft coking coal product while some unwashed product is sold as thermal coal product.

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