CIC Unit Invests in Mining Company SouthGobi
10-28 18:14 Caijing

Sovereign wealth fund China Investment Corp. invested US$ 500 million in convertible debt of SouthGobi Energy Resources Ltd., a subsidiary of Canadian listed mining company Ivanhoe Mines Ltd.

SouthGobi president and CEO Alexander Molyneux said CIC enjoys adequate downside protection on its investment. If fully converted, the 8 percent debenture will give CIC about 22 percent stake of SouthGobi.

The investment will fund the construction of a railway linking China to SouthGobi's Ovoot Tolgoi coal mine in Mongolia.

CIC also has the right to nominate one director to SouthGobi's eight-member board.

The SouthGobi investment is part of a shift in CIC strategy away from purely financial investments in favor of resources.

http://english.caijing.com.cn/2009-10-28....