SouthGobi Energy Resources Ltd. and China Investment Corp. (CIC) announced on Monday that CIC will invest US$500-million in SouthGobi through a convertible debenture financing.

With another US$500-million in its pocket, SouthGobi will accelerate plans to expand production at Ovoot Tolgoi from 1.5 million tonnes a year to eight million, and build a mine at its nearby Soumber deposit. The company also wants to develop a rail link between Ovoot Tolgoi and the Mongolia-China border that could eliminate some congestion at the oft-closed border crossing.