Coal Mining Resources



We have four underground coal mines, all of which are anthracite coal mines. Among these coal mines, 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 first quarter of 2019 and become fully operational in second quarter of 2019.

All of our four coal mines are located in Guizhou Province, which together with Yunnan Province is the only 100-million-tonne-level national coal production base in southwestern China as designated by the State Council in 2014. More specifically, Lasu Coal Mine, Weishe Coal Mine and Luozhou Coal Mine are located in Hezhang County, which is located west of Bijie City, while Tiziyan Coal Mine is located in Dafang County, which is located east of Bijie City. Bijie City and the surrounding northwest areas of Guizhou Province are widely recognised for its abundant resources of high quality anthracite coal. The geological conditions of coal mines in this area are relatively well known after many years of exploration and are suitable for commercial development. With sufficient utilities supply and efficient transportation network of roads and railways, Bijie City has been developed as one of the major production bases of high quality anthracite coal.


Mines in Commercial Production

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.

The initial construction of Weishe Coal Mine commenced in November 2008 and its initial commercial production commenced in October 2012 with the permitted annual production capacity of 150,000 tonnes. On 16 July 2014, Guizhou Energy Administration approved the consolidation plans of Weishe Coal Mine with an increased designed annual production capacity of 450,000 tonnes. Since 16 December 2015, we have commenced joint trial run at the increased designed annual production capacity level of 450,000 tonnes after the substantial completion of its technological upgrade. In 2013, 2014 and 2015, Weishe Coal Mine produced 150,946 tonnes, 159,051 tonnes and 226,604 tonnes of coal, respectively.

According to the Competent Person’s Report, Weishe Coal Mine is classified as a high-gas mine with an estimated potential CBM gas reserve of 48 million m3 and the estimated CBM gas resource of 137 million m3 as at 15 February 2016. Nanneng Clean Energy, our 50%-50% joint venture with Southern Power Grid, is currently operating Weishe CMB Plant which generates power using the CBM collected from Weishe Coal Mine.


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. We expect to obtain the new mining license with respect to such reserved area in October 2016.

The initial construction of Lasu Coal Mine commenced in February 2012 and its initial commercial production commenced in March 2014 with the initial permitted annual production capacity of 300,000 tonnes. On 16 July 2014, Guizhou Energy Administration approved the consolidation plans of Lasu Coal Mine with an increased designed annual production capacity of 450,000 tonnes. Since 12 January 2016, we have commenced joint trial run at the increased designed annual production capacity level of 450,000 tonnes after the substantial completion of its technological upgrade. In 2013, 2014 and 2015, Lasu Coal Mine produced 23,959 tonnes, 309,981 tonnes and 356,619 tonnes of coal, respectively.

According to the Competent Person’s Report, Lasu Coal Mine is also classified as a high-gas mine with an estimated potential CBM gas reserve of 49 million m3 and an estimated CBM gas resource of 141 million m3 as at 15 February 2016. Nanneng Clean Energy plans to construct the Lasu CBM Plant adjacent to Lasu Coal Mine with an aim to utilise the CBM reserve in Lasu Coal Mine for power generation purposes.


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.

The initial construction of Luozhou Coal Mine commenced in April 2008 and its initial commercial production commenced in February 2013 with a permitted annual production capacity of 150,000 tonnes. On 16 July 2014, Guizhou Energy Administration approved the consolidation plans of Luozhou Coal Mine with an increased designed annual production capacity of 450,000 tonnes. Since 16 December 2015, we have commenced joint trial run at the increased designed annual production capacity level of 450,000 tonnes after the substantial completion of its technological upgrade. In 2013, 2014 and 2015, Luozhou Coal Mine produced 145,234 tonnes, 167,274 tonnes and 223,877 tonnes of coal, respectively.


Mine under Development

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.

We expect to develop Tiziyan Coal Mine to upgrade its designed and permitted annual production capacity to 900,000 tonnes in accordance with its approved consolidation plan. The mining design and panel plans of Tiziyan Coal Mine were completed in September 2015. As at the Latest Practicable Date, the construction of Tiziyan Coal Mine had yet to be commenced. We plan to commence the construction of Tiziyan Coal Mine in August 2016 after obtaining the relevant approvals with respect to the commencement of construction and the design of safety facilities.

Similar to our practice in the other three coal mines, we plan to engage third-party contractors to construct the underground coal mine and its ancillary facilities and other surface structures. We plan to adopt semi-mechanised and full-mechanised longwall mining methods at Tiziyan Coal Mine which will allow it to achieve higher production efficiency. In addition, we also plan to construct and operate a coal preparation plant at Tiziyan Coal Mine to ensure we can achieve high quality for the clean coal and fine coal to be produced at Tiziyan Coal Mine.