London South East | The UK's favourite investor portal.

According to the above-mentioned CNOOC insiders, the Shanxi Datong Coal Gas Project is being advanced. It has the support of the Shanxi Provincial Government, and it has a good geographical location advantage. It can start construction after it is approved by the state.

CNOOC Shanxi Datong Coal Gas Project is located in Daoyun City Zuoyun Coal Chemical Industry Base. It is designed to produce 4 billion standard cubic meters of coal-produced natural gas, and the project investment is about 21.6 billion yuan. In March 2016, the project was approved by the Environmental Protection Department of the Ministry of Environmental Protection, but it has not yet been approved by the National Development and Reform Commission.

The progress of the Mengxi coal gas pipeline is relatively smooth. The project was approved by the Ministry of Environmental Protection in April 2017. In January this year, it was approved by the National Development and Reform Commission and is currently advancing the construction of the Tianjin section. According to the original plan, Mengxi Coal Gas Pipeline has six atmospheric sources, including five large coal gas and one LNG receiving station. The five major coal gas types are CNOOC Ordos coal gas, CNOOC Shanxi Datong coal gas, Xinmeng energy Ordos coal gas,Hebei ConstructionOrdos coal gas and Beijing Controlled Energy coal gas, an LNG receiving station refers to CNOOC Tianjin LNG receiving station.

With the cancellation of the CNOOC Ordos coal gas project, the gas source area of the Mengxi coal gas pipeline will be reduced to five. The development of coal-to-gas is one of the key layouts of CNOOC’s “landing strategy” in that year. In 2007, CNOOC New Energy Investment Co., Ltd. (hereinafter referred to as CNOOC New Energy Company) was established, mainly involving wind power, coal gas, power batteries and biomass. can,Solar energyHydrogen and other services. However, after its establishment, all other years were in a loss state except for the profit in 2012.

In April 2014, CNOOC New Energy Company was withdrawn, and Ordos and Datong Coal-to-Gas Project in Shanxi Province were brought under CNOOC headquarters management. The Mengxi coal gas pipeline was assigned to the investment and construction of its CNOOC Gas & Power Group".

More on Celadon, which looks negative - at least for the sale to mentioned prospective buyer - if it is this project...

2015 Annual Report states
"Celadon entered into a Letter of Intent for the sale of Chang Tan West in November 2015 with a large
Chinese state-owned enterprise. The prospective buyer is developing a coal-to-natural-gas project as a downstream project for coal produced at Chang Tan West. In May 2016, we were informed that the proposed Buyer’s coal-to-gas conversion project was included in China’s Thirteenth Five Year Plan; final approvals from relevant central authorities are pending. Once the project receives these approvals we expect negotiations in respect of the Chang Tan West deposit to continue."

Just found this... From June 2018

"http://westdollar.com/sbdm/finance/news/1354,20180612886633224.html

CNOOC Ordos Coal Gas Project Abortion _ Dongfang Fortune Net

After more than three years of establishment,CNOOC(00883)OrdosEnergy and Chemical Co., Ltd. (hereinafter referred to as Ordos Energy Chemicals) was eventually dissolved.

In early June, CNOOC issued an internal notice to revoke its Ordos Energy Chemical Company, and the company’s general manager and other three people were also exempted from their duties. An insider of CNOOC confirmed the above news, claiming that Ordos Energy Chemical Company has indeed been withdrawn. The national enterprise credit information publicity system also shows that the registration status of Ordos Energy Chemical Company has been “deregistered”. The company's registration time is February 2015, and it is located in the New District of Zhungeer Dalu Road, Erdos City, Inner Mongolia. Its main business scope covers the investment and construction of energy and chemical projects and supporting infrastructure, and the development and utilization of clean coal technologies. The above-mentioned sources stated that the main reason for the company's cancellation was that the CNOOC Ordos coal gas project had not passed the EIA approval. “Economic problems are another major reason for revocation.” The current coal price level has made the project economically unaffordable.

In the second half of 2012, the Chinese coal industry ended its previous “Golden Decade” period and entered the downtrend channel. By the end of 2015, the 5500 kcal thermal coal price index in the Bohai Rim has dropped unilaterally to 370 yuan/ton. However, from the second half of 2016, under the influence of macroeconomic policies, the coal market began to bottom out. Although there have been many fluctuations during the period, the current coal price remains high and the ton price is above 600 yuan.

The Ordos Coal-to-Natural Gas Project is one of the three major projects of the “North Line Project” planned by CNOOC during the “Twelfth Five-Year Plan” period. The other two major projects are CNOOC Shanxi Datong Coal Gas Project and Mengxi Coal Gas Pipeline. According to the above-mentioned CNOOC insiders, t

These are significant wins, particularly since the excavator market is incredibly competitive in China, where there are more than 25 local and international manufacturers. "We have tried various brands in our demanding conditions, said Wang Quancai - Chairman, Guangna Group. "The durability, quality and reliability of Cat products is the best, as is the service and support Westrac provides. Our experience is that Caterpillar and Westrac understand our unique business needs and deliver what is required for a high performance job site."
"We're pleased and honored to work with Guangna and help them realize the benefits of a highly productive and efficient job site," said Lawrence Luo, Dealer Principal of Westrac-China."

See
guangnajituan.com/html/xinwenzhongxin/gongsidongtai/2017/0518/470.html
For how the news was reported in China.

[Pretty sure it's the same Lawrence Luo, who after WesTrac was sold appears in 2018 as Celadon's CFO. He knows the region, the industry and one would imagine is networked up with all potential buyers up there.]

SUMMING UP
While China is attempting to reduce its use of coal as part of its energy mix, it will continue to need coal to power its growing economy for many decades to come. Importantly, its 2016 5yr plan came after the Paris Climate Agreement. Coal isn't being phased out in China as it is in UK. Coal will be critical to China for years. It is however closing small inefficient coal mines and backing big players who have better, cleaner tech. This article sums up what they're trying to do...

oilprice.com/Energy/Coal/China-Looks-To-Create-Supersized-Coal-Companies.amp.html

The following quote gives you an idea of just how big one of our mines (Chang-Tan West) is...

"The Haerwusu Coal Mine in the Inner Mongolia Autonomous Region of China ranks as the second biggest coal mine in the world. With estimated recoverable coal reserves of more than 1.7 billion tonnes, it is also the largest open-cast coal mine in China."

Chang-Tan West has 1.1billion tonnes. Sale is very much on imho. Would love to know who main shareholder of Celadon Mining is. We know it's not an ii, so must be big Chinese investor.]

After an active sales process during the second half of the year, Celadon entered into a Letter of Intent for the sale of Chang Tan West in November 2015 with a large
Chinese state-owned enterprise. The prospective buyer is developing a coal-to-natural-gas project as a downstream project for coal produced at Chang Tan West. In May 2016, we were informed that the proposed Buyer’s coal-to-gas conversion project was included in China’s Thirteenth Five Year Plan; final approvals from relevant central authorities are pending. Once the project receives these approvals we expect negotiations in respect of the Chang Tan West deposit to continue."

2016 Origo Annual Report

"The process for the disposal of Celadon Mining Ltd's ("Celadon") main asset, ChangTan West, remains ongoing. The net proceeds of any sale will be distributed to Celadon shareholders (31 December 2016 carrying value: US$20.1 million). In May 2016, we were informed that the proposed buyer's coal-to-gas conversion project was included in China's Thirteenth Five Year Plan; final approvals from relevant central authorities for that project are pending. However, in view of delays in obtaining such approvals, we understand that management has initiated discussions with alternative potential bidders for
Celadon’s assets."

2017 May - Investment Group St Peter Port, which also invested in Celadon Mining, published this re their investment in Celadon.

"Celadon owns two coal projects in Inner Mongolia. Although management are committed to delivering a return to shareholders through the sale of these assets, this is proving extremely difficult. Management have guided shareholders as to what return they might expect, and St Peter Port has discounted this considerably"
Including these numbers...

St Peter Port
Cost £4,400,000
Fair value £1,990,000

Celadon Mining, which is developing a coal and coal-to-liquids project in Inner
Mongolia, China. We invested a further £660,000 by acquiring shares from another investor in Celadon, the vendor being a fund with a requirement to liquidate its holdings.

2017 June
Lawrence Luo [aka Luo Dong] now CFO at Celadon Mining was working as CEO of WesTrac China doing deals with the biggest players in coal in North East China e.g. Guangna

caterpillar.com/en/news/caterpillarNews/customer-dealer-product/caterpillarandwestrac-chinawinlargehydraulicexcavatordealininner.html
"CATERPILLAR AND WESTRAC-CHINA WIN LARGE HYDRAULIC EXCAVATOR DEAL IN INNER MONGOLIA, CHINA
Productivity, reliability, fuel economy and outstanding dealer support are why customers like Guangna Coal Industry Group buy Cat® equipment and keep coming back. The private entrepreneurial company operates 13 coal mines in northern China and depends on Cat excavators to handle overburden work and coal removal. Late last year, Guangna purchased 170 large excavators (336-349 size) from Westrac, followed by another large fleet deal of 230 excavators (340/349 size) this April. The

2011 Bakersteel Resource Trust who also invested in Celadon Mining releases their Annual Report
Including following numbers
Cost £1,594,000
Fair value £143,000

2013 Origo Annual Report

"Our portfolio company Celadon Mining Limited (“Celadon”) made great progress during the course of the year, by further developing its advanced Chang Tan West thermal
coal project in Inner Mongolia ("Chang Tan West"). Chang Tan West, in which Celadon acquired a 23 per cent. equity stake in mid-2012, was included in the Inner Mongolian Government's 'Mining Permit Distribution Plan' (the "Plan"). The Plan sets out a list of priority coal mining projects that have been selected for the granting of future mining licenses. As part of its inclusion in the Plan, Chang Tan West’s mining territory was expanded from 20.35 square kilometres to 30.81 square kilometres, increasing coal resources from 602 million tonnes to 1.05 billion tonnes according to Chinese specifications. At the
same time, the phase one mining production permit to be allocated was increased from 4 million tonnes per annum to 6 million tonnes per annum. Meanwhile, Celadon completed a feasibility study on and received approval
from the Inner Mongolia Government to establish a Coal-
to-Olefins Project which could utilise coal from Chang Tan West."

2014 August - Celadon up Chang Tan stake

"LONDON ( Alliance News ) - Origo Partners PLC , theChina -focused private equity investor, Tuesday said portfolio company Celadon Mining Ltd has increased its stake in the Chang Tan West thermal coal project in Inner Mongolia for an undisclosed, staged cash consideration.

Celadon increased its stake in Chang Tan West to 80% from 62% previously, which followed the acquisition of an initial 23% equity stake in the project in 2012 forUSD44.0 million .

Origo is Celadon's largest institutional shareholder with a 9.7% equity stake, acquired in 2011 for aboutGBP8.0 million .

"The consolidation of Celadon's holding in Chang Tan West is a significant positive development, and we would expect the increased holding to substantially improve the potential returns from the future development of Chang Tan West," Origo Chief Executive Chris Rynning said in a statement."

2015 December 12th

Paris Climate Agreement Signed

2015 Origo Annual Report

"Following a strategic review and discussions with its key shareholders, including Origo, Celadon Mining Ltd. (“Celadon”) has commenced a process to dispose of its main asset – the Chang Tan West – and distribute the proceeds to its shareholders.
Chang Tan West is a high quality thermal coal deposit located in the Jungar Banner coal belt, the closest major coalfield to the coastal areas of Northern China. Chang Tan West has current coal resources of 603 million MT (Chinese classification). Celadon owns 80 per cent of Chang Tan West and is in the process of acquiring the remaining 20 per cent of the relevant project company.
After an active sales process

Latest Share Chat

Member Info for MegaTron1981

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Latest Share Chat

Member Info for MegaTron1981

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Please enter at least 2 characters

No results found

Search results

Recently viewed

Trending