---
title: "SouthGobi to Add New Dry Coal Separation Plant at Ovoot Tolgoi Mine"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284249802.md"
description: "SouthGobi Resources has announced a build-transfer agreement with Tangshan Shenzhou Manufacturing Group to construct a new dry coal separation plant at the Ovoot Tolgoi Mine in Mongolia. Valued at approximately RMB53.8 million, the project aims to enhance processing capacity and technology, potentially improving coal product quality and operational efficiency. This investment is classified as a discloseable transaction under Hong Kong listing rules, indicating its material nature without requiring director abstentions. Payments are expected to be completed by April 2031."
datetime: "2026-04-27T15:15:41.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284249802.md)
  - [en](https://longbridge.com/en/news/284249802.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284249802.md)
---

# SouthGobi to Add New Dry Coal Separation Plant at Ovoot Tolgoi Mine

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SouthGobi Resources ( (TSE:SGQ) ) has provided an announcement.

SouthGobi Resources has entered into a build-transfer agreement under which Tangshan Shenzhou Manufacturing Group will construct a new stand-alone dry coal separation system and related facilities at the Ovoot Tolgoi Mine in Mongolia. The project, which features advanced high-efficiency and intelligent dry coal selection equipment, is valued at about RMB53.8 million, with ownership and relevant intellectual property to transfer to Southgobi Sands upon agreed conditions, and payments expected to be completed by April 2031.

The deal is classified as a discloseable transaction under Hong Kong listing rules, triggering reporting and announcement requirements but not requiring director abstentions, indicating it is material yet not transformational in scale. The investment underscores SouthGobi’s efforts to upgrade processing capacity and technology at Ovoot Tolgoi, which could enhance coal product quality and operational efficiency, potentially strengthening its competitive position in regional coal markets over the longer term.

**More about SouthGobi Resources**

SouthGobi Resources Ltd., continued under the laws of British Columbia and listed in Hong Kong and on the TSX Venture Exchange, operates in the coal mining industry with its primary operations in Mongolia. Through its wholly owned subsidiary Southgobi Sands LLC, the company focuses on developing and operating coal assets such as the Ovoot Tolgoi Mine to supply regional markets.

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