SouthGobi Resources has warned that fuel shortages  may force it to curtail operations. Russia is
the primary supplier of fuel to Mongolia and it has substantially cut fuel
exports to Mongolia for the month of May, the company said.

SouthGobi said its fuel supplier has claimed force majeure
and will be unable to meet contracted fuel supply this month. The company said
it has managed to secure an agreement with a new supplier to offset some of the
shortfall. The company said the new supply combined with its existing diesel
stocks will allow its Ovoot Tolgoi mine to operate for about 45 days under
normal conditions, or around three months if operations were partially
curtailed to preserve fuel.