Tomorrow International (0760. HK) announced yesterday that the company signed a non binding memorandum of understanding with an independent third party to acquire 80% of the rights and interests of Jiexiu Coke Mine in Shanxi Province at an estimated cost of no less than 420 million yuan.
Ye Sunbin, a consultant of Tomorrow International, said that the company is confident that it will become the largest coking coal listed company in Hong Kong within two to three years.
The Shanxi coal mine to be purchased this time has about 54.66 million tons of coking coal reserves. At present, the annual output of about 300000 tons of coking coal. It is expected that after the construction of several coal pits, the annual output will be increased to 900000 tons of coking coal.
In addition, Tomorrow International signed a supplementary memorandum of understanding on October 17 to acquire the rights and interests of Inner Mongolia Coke Mine. The coking coal mine has 99.6 million tons of coking coal reserves, and it is planned to sign a formal agreement before the end of the year. The coal mine construction project will take about 18 months, and the raw coal can be put into trial production within 6 months after the project is started. It is estimated that about 500000 tons of marketable raw coal can be produced at the initial stage. (Li Yu)
