Mongolia Energy (HKG:0276) said its Mongolian subsidiary MoEnCo has been ordered to pay about HK$902.6 million in back taxes and penalties for fiscal years 2017 to 2020, following a tax tribunal decision, according to a July 25 bourse filing.

Shares of the company were down about 4% in Monday's recent trade.

It intends to challenge the ruling within the required 30-day period, according to the filing.

Despite the pending legal process, the Mongolian tax authority retains the right to seize MoEnCo's assets if the liability remains unpaid.

The company said it will continue to engage with authorities to prevent any enforcement actions that could disrupt mining operations.