SouthGobi Energy Resources - CIC Invests $500m.

SouthGobi Energy Resources (SGQ) reported on October 26, 2009 that China Investment Corporation, the country’s Sovereign Wealth Fund, will provide US$500 million in financing to support accelerated investment program in Mongolia. We rate this development as positive as it will allow SGQ to significantly ramp-up its coal production, develop transportation infrastructure and build value-added processing, which will significantly boost the company’s revenue and profitability margins.

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