The new 10,992.92 hectare mining license is granted for an initial term of 30 years with an option for two 20-year extensions.

SouthGobi Sands president and CEO Alexander Molyneux said the license will enable the company to finalize plans for mine development at Soumber.

"Soumber will likely have an integrated coal processing facility and will require around two years of development for first clean coal production."

SouthGobi plans to complete a pre-feasibility study on Soumber to update resources and reserves during 2012.

Minarco-MineConsult (MMC) has completed an independent NI 43-101 resource estimate for the prospect containing bituminous coal in January 2011.

MMC estimated 61.4 million tons of measured and indicated resources and 65.8 million tons of inferred resources.

SouthGobi Sands is the subsidiary of SouthGobi Energy Resources.