Corporate Profile



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We are a profitable producer of anthracite coal based in Guizhou Province, the PRC, engaging in the extraction and sale of anthracite coal. We had the largest designed annual production capacity among privately owned anthracite coal producers in Guizhou Province as at the end of 2015. We possess scarce anthracite coal resources with the characteristics of high calorific value, low sulphur content and low ash content. Our coal products are suitable to be used as chemical coal and PCI coal, as well as for further value-added applications, such as premium quality active charcoal. We have also been cooperating with Southern Power Grid to utilise CBM resources of our coal mines for power generation.
 

We have three coal mines in commercial production and one coal mine under development. All of our coal mines are anthracite coal mines. We produce four types of coal products according to the size of coal, namely, big lump coal, medium lump coal, clean coal and fine coal. In March 2014, we successfully obtained the official consolidator qualification according to the Guizhou coal industry consolidation policy and we are one of the less than 100 qualified consolidators in Guizhou Province that are permitted to engage in coal mine acquisition and operation.

We have four underground anthracite coal mines located in Bijie City, Guizhou Province, the PRC, among which, Weishe Coal Mine, Lasu Coal Mine and Luozhou Coal Mine have commenced commercial operation, while Tiziyan Coal Mine is under development and its construction is expected to be substantially completed in the first quarter of 2019 and become fully operational in the second quarter of 2019. All of our coal mines are accessible by roads.

Weishe Coal Mine

Weishe Coal Mine is being operated by Weishe Mining, one of the branches of our PRC operating subsidiary, Guizhou Union. It covers a licensed mining area of approximately 1.9 sq.km. with total proved and probable coal reserves of 9.6 million tonnes and marketable reserves of 8.6 million tonnes, and total measured, indicated and inferred coal resources of 15 million tonnes in five coal seams as at 15 February 2016.

Lasu Coal Mine

Lasu Coal Mine is being operated by Lasu Mining, one of the branches of our PRC operating subsidiary, Guizhou Union. Its licensed mining area covers 1.6 sq.km. with total proved and probable coal reserves of 2.8 million tonnes and marketable reserves of 2.5 million tonnes, and total measured, indicated and inferred coal resources of 9.6 million tonnes in four coal seams as at 15 February 2016. Pursuant to an approval dated 6 April 2016 granted by the Department of Land and Resources of Guizhou Province for the adjustment of licensed mining area, the reserved mining area of Lasu Coal Mine, which includes its current licensed mining area, is 4.8 sq.km, with total proved and probable coal reserves of 11.9 million tonnes and marketable reserves of 10.7 million tonnes, and the measured, indicated and inferred coal reserves of 40.1 million tonnes in four coal seams as at 15 February 2016.

Luozhou Coal Mine

Luozhou Coal Mine is being operated by Luozhou Mining, one of the branches of our PRC operating subsidiary, Guizhou Union. It covers a licensed mining area of 2.3 sq.km. with total proved and probable coal reserves of 15.4 million tonnes and marketable reserves of 14.0 million tonnes, and total measured, indicated and inferred coal resources of 24 million tonnes in five coal seams as at 15 February 2016.

Tiziyan Coal Mine

Tiziyan Coal Mine covers a licensed mining area of 6.9 sq.km. and is our largest mine measured by its total proved and probable coal reserves, which amounts to 43.0 million tonnes. It has total marketable reserves of 38.7 million tonnes, and its total measured, indicated and inferred coal resources is 70 million tonnes in six coal seams as at 15 February 2016. We will operate it through Tiziyan Mining, one of the branches of our PRC operating subsidiary, Guizhou Union.

OUR STRATEGIES

We plan to develop our business, improve our market competitiveness and enhance our profitability by carrying out the following strategies: Increase operation scale and enhance market position by leveraging our qualification as a coal mining consolidator to acquire high quality anthracite coal mines. Develop our largest coal mine, the Tiziyan Coal Mine, into a mine in commercial production within the next three years. Perform further research and development on high value-added utilisation of anthracite coal as active charcoal. Continue to enhance our operation efficiency by leveraging our comprehensive management system and improve our cost control through technology upgrade.