SouthGobi Resources Ltd., a Canadian company focused on developing metallurgical coal in Mongolia, announced impressive growth in both production and sales for the year 2023.
Production Surge:
- Raw coal production volume reached a significant 4.05 million tonnes in 2023.
- This represents a massive increase of 487.0% compared to the previous year’s low production volume.
Ovoot Tolgoi Mine in Focus:
- SouthGobi Resources operates the Ovoot Tolgoi coal mine, located in the South Gobi Province, Mongolia, close to the Chinese border.
- The mine is an open-cut operation that commenced full-scale production in July 2008, and SouthGobi Resources holds a 100% ownership stake.
Strong Sales Performance:
- Coal sales in 2023 reached 3.59 million tonnes, reflecting a substantial 223.4% increase from the prior year.
- This growth was driven by a rise in sales across all three main coal types:
- Premium semi-soft coking coal: Sales jumped from 270,000 tonnes in 2022 to 2.08 million tonnes in 2023 (a 666.7% increase).
- Standard semi-soft coking coal: Sales increased from 80,000 tonnes to 530,000 tonnes (a 562.5% increase).
- Processed coal: Sales grew from 760,000 tonnes to 980,000 tonnes (a 29.0% increase).
Improved Coal Pricing:
- The company also experienced an increase in average coal sales prices across all categories:
- Premium semi-soft coking coal: Price rose from US$73.49 per tonne to US$106.91 per tonne (a 45.8% increase).
- Standard semi-soft coking coal: Price increased from US$39.85 per tonne to US$70.58 per tonne (a 77.1% increase).
- Processed coal: Price increased from US$65.43 per tonne to US$75.23 per tonne (a 15.0% increase).
Processed Coal Explained:
- Processed coal is a blended product created by mixing premium semi-soft coking coal with high ash coal.
- Previously known as “washed coal,” processed coal offers a more economical option for customers.
- SouthGobi Resources strategically adjusts the production volume of processed coal based on market conditions.
Looking Ahead:
SouthGobi Resources’ 2023 performance demonstrates a successful year for the company. The significant growth in production, sales, and pricing positions them well for continued success in the Mongolian coal market. The company’s ability to adjust its product mix based on market demand, as evidenced by the increase in processed coal sales, further strengthens their market position.
By: The Coal Trader, AI generated
