First Sino-Foreign Joint Cooperative Coal Mine in China Put into Official Operation

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The completion ceremony for Daning coal mine was held in northwest China’s Shanxi province on September 13, 2007, ending seven years of construction. The modern coal mine, owned by Shanxi Asian American Daning Energy Company Limited (SAADEC) (Shanxi, China), has an annual production capacity of 4 million metric tons. The ceremony marks the first Sino-foreign joint cooperative in China’s underground coal-mining enterprise. Chinese and American leaders and representatives attended.

SAADEC was jointly invested by U.S.-based Asia America Coal Incorporated (56%), Shanxi Lanhua Sci-Tech Venture Company Limited (Shanxi, China) (600123.SH) (36%) and the Jincheng branch Of Shanxi Coal Transportation & Sales Co. (8%) (Shanxi, China) on May 12, 2000. The $ 140 million Daning coal mine is south of Qinshui coal field in Jincheng city in the Shanxi province with a mining area of 38.83 square kilometers and an exploitable reserve of 171 million metric tons. SAADEC’s underground mining system is mainly based on comprehensive mechanical mining for full sections at once, supplemented with the continuous board and wall method. The major advanced production and selection equipment was imported.

Asian American Coal is the first multinational company engaged in coal mining in China. In addition to the joint venture in Jincheng city, the company also cooperated with Lu’an Coal Mining Corporation (Shanxi, China) and acquired a $300 million coal mining project in the suburbs of Changzhi city in the Shanxi province. The company owns 45% of the shares. Several coal mining projects are also currently under negotiation, as coal is the most important energy in China. Coal consumption accounts for about 70% of the country’s total primary energy consumption. After the increasing energy demand and the improving investment environment in China, more and more international funds will move into China’s coal industry.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.