China Huadian International low-cost intervention in the development of Shanghai Temple Mining Area

Huadian International (600027) has recently carried out a series of coal resource integration in Shanghai Temple Mining area in Inner Mongolia.　　The company said that, since the middle of 2009, by making full use of the favorable opportunity of coal price retreat, sustained acquisition, to achieve a reasonable price and low-cost participation in the western region of Shanghai Temple Mining area of the strategic goal.　　According to the announcement, the company has completed the Inner Mongolia ordos Shanghai Temple Mining Area Western black Beam coal mine, Mount Sha Zhangtu coal Mine and the 3 coal Mine company's equity acquisition, plus the 2009 acquisition of the Fu City mining and Great Wall coal, Huadian International has currently held a total of 5 Shanghai temple Mining shares. According to statistics, the acquisition of the above 5 coal mines reserves of 1.49 billion tons of reserve resources, Huadian international rights and Interests reserve reserves of 480 million tons, the total purchase price of about 2.45 billion yuan.　　In terms of reserves, the average price per ton is 5.15 yuan, and the average price per ton is about 10 yuan, if calculated according to recoverable reserves. According to the introduction, with the end of 2009 coal prices have risen substantially, the purchase price of coal resources is also rising. It is reported that with the Shanghai Temple Mining resources similar to the resource conditions of Ordos Dongsheng District Current mining rights transfer two-tier market reserves reserve resources price has risen to 20 yuan/ton.　　UBS Securities that the company's recent purchase price in Inner Mongolia coal mine is fair and reasonable.　　The company said that it will take the above 5 coal mines as the basis, and Shandong Xinwen Mining group Strong together, launched a series of strategic cooperation, the orderly development of Shanghai Temple Mining area west of the integrated coalfield, follow-up coal mine equity integration and related industrial investment is in accordance with the company's strategic layout plan to advance smoothly. Shanghai Temple Mining area of 682 square kilometers, resource reserves of 14 billion tons, is large reserves, good quality coal, geological structure simple large-scale self-contained coalfield. Not only that, Shanghai Temple Mining Area strategic location, west and the other two major national energy chemical base Ningxia Nanjing East Energy Chemical Base, south and Shaanxi Yulin phase, together constitute China's coal "golden Triangle." In the next five years, with the opening of the Western-China Railway and the construction of the third coal passage to the port, the Shanghai Temple Mining area will become an important coal production base.