Huadian Power to buy 85pct stake in Haoyuan Coal

Friday, 16 Sep 2011

China Knowledge reported that Huadian Power International Co Ltd the largest power producer in Shandong Province of China will acquire a 85% stake in Inner Mongolia Haoyuan Coal Co for CNY 715 million.

Upon the completion of the acquisition, Huadian Power International will acquire a colliery located in Erdos of the Inner Mongolia Autonomous Region with recoverable coal reserves of 54.6 million tonnes.

The colliery currently has an annual output capacity of 600,000 tonnes, which is expected to increase to 1.2 million tonnes in the fourth quarter of this year.

Since 2009, Shanghai and Hong Kong listed Huadian Power International has acquired coal assets with an annual output capacity totaling 12 million tonnes principally in Shanxi Province, the Inner Mongolia, the Ningxia Hui Autonomous Region and Anhui Province.

(Sourced from China Knowledge)

Inner Mongolian 551 coal mines producing 790 million tonnes a year

Wednesday, 17 Aug 2011

It is reported that China northern Inner Mongolia Autonomous Region has grown into the largest raw coal producing province in the country by 2010 with 551 modernized large mines and an annual output of 790 million tonnes.

Possessing merely 27 small coal mines equivalent to 350,000 tonnes per annum back 60 years ago, Inner Mongolia has literally taken a giant leap to stand on the forefront of the coal industry development in China.

Inner Mongolia boasts a cumulative proven coal reserve of 732.3 billion tonnes, the greatest in China, among which 36 coalfields are verified with over 100 million tonnes of deposit. Since the 11th Five Year Plan period large scale regulation, optimization and upgrading has been launched in the autonomous region, raising its coal production contribution in the whole nation from 12% to 24.4% average single-pit capacity to 1.4 million tonnes resource recovery rate above 60%, mechanized production exceeding 90%.

The death rate per million tonne of raw coal goes down steadily to hold at around 0.05 now. Small mines below 300,000 tonnes have all withdrawn from the market. Hence, the coal industry has gone onto a fast lane of healthy development. In the meantime, Inner Mongolia has been sticking to the industry chain mode of coal coke-chemical, coal electricity chemical and coal electricity aluminum in the direction of cyclic economy and comprehensive resource utilization.

The large scale and highly technical coal conversion projects in operation or under construction have become or are to become the power engine of the new type coal industry development in the autonomous region. The booming coal sector has laid a solid foundation for the industry prosperity in Inner Mongolia forming heavy industries featuring metallurgy, chemical engineering, building material and electric power as well as promoting communications and transportation.

In the first five months this year, the coal sector in the entire region achieved a profit of CNY 31.93 billion up by 44.8%YoY. This accounts for 51.4% in the total profits of the industries above designated size in the region.

(sourced MySteel)
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Mongolia picks Macmahon, BBM as contract miners for major deposit

Fri Aug 12, 2011

* Selection could mean India's Mesco Steel out of running
* Macmahon, BBM likely to start operations later this year -Erdenes Exec

ULAN BATOR Aug 12 (Reuters) - Mongolian state-owned miner Erdenes Tavan Tolgoi LLC has selected Australia's Macmahon Holdings Ltd and Germany's BBM Operta as mining contractors for the major East Tsankhi coal deposit, a top company executive told Reuters on Friday.

The government has split the massive Tavan Tolgoi coal field into two sections for development. The east Tsankhi area is owned by Erdenes TT, which is planning an initial public offering worth at least $10 billion to help fund the development of the deposit, while the west Tsankhi block is being auctioned to miners via an international tender.

The tender to pick mining contractors for east Tsankhi had also included India's privately-owned Mesco Steel. Its not clear how much the contract mining agreement is worth.

"Macmahon and BBM Operta have been chosen as contract miners for east Tsankhi," Erdenes MGL Executive Director B.Enebish told Reuters.

"They should be able to start mining operations this year."

Erdenes has said that it plans to produce 15 million tonnes of coal from the east Tsankhi field by around 2015.

To help bankroll the operations, it signed its first-ever term contract from the field with the Aluminium Corp of China Ltd , which will sell some of the coal to Chinese, Japanese and South Korean companies.

Shandong to build six coal bases in next 5 yrs

Feb 21, 2011

East China’s Shandong province would build six coal production bases in the 12th Five-Year plan, one inside and the others outside the province, Dazhong Daily reported, citing local authorities.

During the period from 2011 to 2015, the Luxi base in Shandong, will be constructed, said officials with Shandong Coal Industry Bureau.

The province plans to construct 16 new mines with total designed capacity of 12.6 million tonnes, and put 18 mines into operation adding 16.65 million tonnes of new production capacity, the bureau said

Meanwhile, Shandong will develop five coal bases outside the province, including Ningmeng (Ningxia and Inner Mongolia), Xinjiang, Yungui (Yunnan and Guizhou), Jinshaan (Shanxi and Shaanxi), and Australia, with production capacity of 50 million, 60 million, 25 million, 20 million and 40 million tonnes respectively, it noted.

By 2015, Shandong would have a total production capacity of 344 million tonnes, 158 million tonnes of which would come from the base inside the province, and 186 million tonnes for others.

(sourced:en.sxcoal.com)