SouthGobi Resources to restate results for past 3 years
Nov 8 (Reuters) - Coal miner SouthGobi Resources Ltd , controlled by Rio Tinto, said it would restate results from 2011 through 2013 because of an error in the way it booked revenue from coal sales at its Ovoot Tolgoi mine in Mongolia.
The company said it expects a delay in filing its third-quarter results due Nov. 11, after it recognized revenue earlier than it should have at the flagship mine.
The mine produces and sells coal to customers in China.
Turquoise Hill Resources , through which Rio controls SouthGobi Resources, also said it would restate its results for the same period.
SouthGobi said it should have recognized revenue when coal was loaded onto a customer's truck, and not when the coal was delivered to the customer's stockpile, without being collected.
The company said had applied for an order to stop its management from trading in its stock.
SouthGobi said that if it delayed filing of the restated results beyond Nov. 14, it could potentially default on convertible debentures held by China Investment Corp.
SouthGobi has had a strained relationship with the Mongolian government. The country is investigating if the company has breached anti-corruption, money laundering and taxation laws.
Mongolia has annulled more than 100 mining licenses following a criminal investigation into former government officials accused of illegally issuing licenses between 2008 and 2009, raising concerns among foreign investors about the risks of doing business.
Another Canadian company, Kincora Copper, said on Thursday that it had received a letter from Mongolia's Mineral Resources Authority saying that two of its licenses had been revoked.
The company said it expects a delay in filing its third-quarter results due Nov. 11, after it recognized revenue earlier than it should have at the flagship mine.
The mine produces and sells coal to customers in China.
Turquoise Hill Resources , through which Rio controls SouthGobi Resources, also said it would restate its results for the same period.
SouthGobi said it should have recognized revenue when coal was loaded onto a customer's truck, and not when the coal was delivered to the customer's stockpile, without being collected.
The company said had applied for an order to stop its management from trading in its stock.
SouthGobi said that if it delayed filing of the restated results beyond Nov. 14, it could potentially default on convertible debentures held by China Investment Corp.
SouthGobi has had a strained relationship with the Mongolian government. The country is investigating if the company has breached anti-corruption, money laundering and taxation laws.
Mongolia has annulled more than 100 mining licenses following a criminal investigation into former government officials accused of illegally issuing licenses between 2008 and 2009, raising concerns among foreign investors about the risks of doing business.
Another Canadian company, Kincora Copper, said on Thursday that it had received a letter from Mongolia's Mineral Resources Authority saying that two of its licenses had been revoked.
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