SouthGobi Resources Completes Initial Delivery to Risun Mining

SouthGobi Resources Ltd. (TSX:SGQ) reports its completion of its “direct delivery” coal sale from its Ovoot Tolgoi coal mine in southern Mongolia to Risun Mining Co. Ltd.

The press release is quoted as saying:

The initial delivery to Risun was the first delivery under a 500,000 tonne, 2011 sales contract. Using a logistics service provider, SouthGobi transported coal to a customs bonded yard at Ceke, China, approximately 50 kilometres south of SouthGobi’s Ovoot Tolgoi coal mine. Ceke is a major Chinese coal distribution terminal with rail connections to key coal markets in China. Risun then undertakes its own logistics from there, with the coal destined for use in coke-making.

SouthGobi’s President and CEO, Mr. Molyneux says:

“This coal delivery is significant because it establishes that SouthGobi can offer customers coal inside China at the Ceke rail terminal as an alternative to mine-gate collection.”  “We’re also delighted to welcome Risun as a new customer, which has annual coal requirements.”

Click here to access the entire news release.

Click here to access SouthGobi’s company profile.