Concession Coal Enterprise Integration Xishan Coal Electricity regrets exit Inner Mongolia project

Yesterday, Xishan coal power (000983) announced the end of Eerduosi Wushenqi Chemical Co., Ltd. and Huangtaule cover coal project cooperation, the resumption of investment funds. Some analysts said that Shanxi coal power to withdraw from the project is helpless, this is mainly subject to the integration of Shanxi coal enterprises, Shanxi coal enterprises do not allow the expansion of investment in the provinces.　　Although the incident will not affect the short-term performance of Shanxi coal power, but to some extent, will slow down the company's future expansion of the pace. It is reported that Xishan coal power has 4 coal mines are located in Taiyuan Xishan Mining area, belong to the old base; after the construction of the second coal base is Luliang County mining area, Xing County mining area is rich in coal resources, mainly scarce coking coal and gas, the company Changxing Project Oblique Ditch mine currently recoverable reserves are 1.8 billion tons, but also the national "Eleven-Five" Focus on the construction of 10 tons of mine one.　　But the expansion of Xishan coal electricity is obviously not satisfied with this. August 10, 2008, Xishan Coal Electricity Board of Directors to consider the adoption of the "Cooperation development of the World Forest Company methanol Project", announced with Eerduosi Wushenqi Chemical Co., Ltd. will cooperate in the development of coal methanol project, the company contributed 232 million yuan, accounting for the total contribution of 40%. The company shares 10% of the Ordos Southern Railway Company, and Xishan coal-electricity invested 32 million yuan in proportion.　　The Inner Mongolia Autonomous Region Government agrees to support the coal resources of the company, that is, Inner Mongolia Huangtaule Coal Co., Ltd. In the eyes of the outside world, this coal project in Inner Mongolia is believed to be the third coal base of Xishan coal power, which can also play the road to the expansion of other provinces while thickening the company's resource reserves. Xishan coal Electricity also plans to build "4 300,000 tons" coal methanol project. Under construction, the annual output of 300,000 tons (first phase) of the coal methanol project, the first phase of the project estimated investment of 1.16 billion yuan, the project capital of 580 million yuan, is expected to launch in September 2010.　　To this end, on July 14, 2009, Xishan Coal Electricity to meet the funding needs of the project under construction, but also for the 238 million of the company's loans guarantee. All the facts show that, because of good expectations, Xishan coal power did not relax or slack in the implementation of the Inner Mongolia Coal mine project. But yesterday, Xishan coal power issued a notice announced the termination of the project, due to the changes in Shanxi investment policy, the company failed to obtain the state-owned departments on the coal Mine project approval.　　The result was a surprise to many investors. "To be clear, is to consolidate concessions for Shanxi coal enterprises." "The coal industry analyst at the securities firm, who declined to be named, said Xishan coal electricity initially invested in Inner Mongolia coal mine project is approved by the Shanxi state-funded committee, the coal Methanol project is on the one hand, the main is the Ba Yan Gao Le coal mine and the surrounding coal quality is very high, Xishan coal power can be this as a stronghold to expand next to the expansion of the company to provide　　But this obstruction, the key is in Shanxi coal enterprises in the process of integration, the demand for coal enterprises focus on the province, no longer allowed to expand investment in other provinces. "is indeed a factor. "Xishan Coal electricity chief Dong Ningzhihua yesterday accepts the securities Times reporter to interviewThe investment company of this project has been very optimistic, the termination is also regrettable, but there are other reasons for the termination of implementation, as for the specific circumstances, it is not convenient to disclose.