Chalco seeks controlling stake in Canada’s SouthGobi

The state-owned aluminium producer offers $926 million for up to 60% of the Mongolia-focused coal miner through a tender offer as it steps up its diversification strategy.

Chalco seeks controlling stake in Canada’s SouthGobi
Stripping at SouthGobi’s Ovoot Tolgoi coal mine in Mongolia

Aluminum Corporation of China Chalco announced yesterday that it plans to acquire between 56% and 60% of SouthGobi Resources, a Canadian company with coal mining operations in Mongolia’s South Gobi region and listings in Toronto and Hong Kong. The two companies have also signed a cooperation agreement, which will take effect once the acquisition is completed.

A tender offer will be made to all SouthGobi shareholders, but SouthGobi’s majority owner, Canadian mineral...

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