Chinese Capital Takes the Lead in Mongolian Mining

As the Mongolian government begins to loosen restrictions on foreign investment in natural resources, global investors have shown keen interest to tap the market in the resource-rich country, particularly from China.

On January 19, SouthGobi Energy Resources Ltd., a Canada-based coal producer operating in the southern deserts of Mongolia, launched its initial public offering in Hong Kong and secured Asia's top sovereign wealth funds, China Investment Corp (CIC) and Singapore's Temasek as cornerstone investors. Its shares were 5 times oversubscribed by international institutional investors and 20 times oversubscribed by public investors.