If Mongolia cannot get its house in order now then everyone will have to wait until 2016 (elections)... and only a few large foreign investors have the funding cushion to afford that.

Dale Choi

Categorized in : World

Long-term losses from this damage would far outweigh any short-term questionable benefit, it would appear to us that Mongolia could be on the path to follow the company of countries which are not held in high regard by international financial market, such as Venezuela and Argentina.

Still, the likelihood has increased that SouthGobi could end up with facing a penalty of ~$17.5 million, which increases risk of insolvency for the company.