SouthGobi Resources Ltd. said Jan. 25 that Khan-Uul District Civil Court of First Instance in Mongolia has dismissed the lawsuit filed by a fuel supplier over alleged outstanding fuel supply payments by the company.
The lawsuit was dismissed on the basis that the parties should resolve the matter through arbitration in Mongolia in accordance with the fuel supply agreement between Magnai Trade LLC and its SouthGobi Sands LLC unit.
Magnai claimed 22.2 billion Mongolian tugrik, equivalent to about US$8.9 million, comprising 14.6 billion tugrik in outstanding fuel supply payments and 7.6 billion tugrik as a late payment penalty and associated interest costs.
SouthGobi noted that it will continue to resolve the dispute with Magnai through continuing business discussions, or through arbitration if talks fail.
As of Jan. 24, US$1 was equivalent to 2,487 Mongolian tugrik.