SouthGobi Resources has terminated the employment of chief executive officer Aminbuhe with immediate effect, citing his incapability to fulfil his daily duties. The company operates the Ovoot Tolgoi Coal Project in southern Mongolia.
The move last week follows SouthGobi’s announcement on November 17 that Aminbuhe had been arrested on October 11 and is being detained in China as a suspect in a fraudulent loan case.
In a statement, the coal miner said Aminbuhe had also been removed as the chairman of the Board, but remained on the Board as a non-executive director.
The company has commenced a search for a new permanent chief executive.
Bing Wang, who was appointed interim chief executive on November 13, will continue to act in this capacity until a replacement is appointed.
SouthGobi has formed a special committee to initiate a formal internal investigation into the charges against Aminbuhe.
The committee will also check the connection, if any, between those charges and the company and his conduct as chairman and chief executive, which will include engaging external advisors to assist in the investigation.
Earlier, the company said that it had not paid any interest on a convertible debenture to China Investment Corp (CIC) and was in talks regarding a repayment plan.