chinese ugc deal info from official source

Yesterday, i made a statement that UGC seems to be going full steaming ahead and faster than we would have imagined.

Without surprise, someone doubted my statement and accused my intention rightfully, because i did not quote where i got my conclusion from. So here is the data I collected.

Information Source:
Official Government Website -- Xilinhaote City, Inner mongolia Province, PRC.
http://www.xilinhaote.gov.cn

Two directly related article were found released to public at
21/03/12 and 28/05/12.

The first article outlined the project scope and estimated construction date.
The second article confirmed the current progress. The details are as following:
21/03/12 -- Article Title "our city has reached further agreement with GCP"

This document outlined the project scope and estimated construction date to be Mid April.

28/05/12 -- "Government development plan and work progress report"

This document outlined major project in progress in Xilinhaote city. UGC was mentioned as a one liner and confirmed it is current status.

There are also other documents mentioned plants by third party companys in BiDiYuan special economy/develop Zone (a typical setup of chinese gov dishing out tax incentives and attract investment) to take up by-products of UGC and produce building materials.


The articles are in chinese, i will post my translation. You guys feel free to grab the article and feed it through online translator or get a Chinese friend to assist you.


Document Released 21/03/12
http://www.xilinhaote.gov.cn/zwxw_1/jxyw/201203/t20120321_751500.html

In 08/03/12, the team led by city mayor and other government officers has reached further agreement in Beijing with Zhu GongShan, chairman of GCP, regarding the project of UGC.

Total Project investment from golden concord poly – 19.8 B yuan, $3B aus

Phase 1: 3.76 B Yuan, $500M aud

Yearly production capacity: 1.8 Billion Cubic meter underground gas (not feet) + 5000 BOPD (225,000 tone of synthetic oil)

Projected yearly sales revenue 1.6 b yuan, $300m Aus

Phase 2: 16 B yuan,

Yearly Production capacity: 8 Billion Cubic Meter gas + 22,000 BOPD (1 m tone of oil)

Projected Yearly sales revenue : 7 B yuan, $1.1B Aus

Estimated construction commence date: Mid April/2012

GCP uses LNC advanced underground technology which operates 200 m to 1500 m underground. Burning tunnel, 1 kilo long, 50 m wide.

Per unit, it produces 9000 cubic meter gas. LNC has the only commercialised underground gasify device in the world, which has stably operated for 50 years in WZB. QLD project stably running for 12 years. Gas to oil stably running for 6 years.


Document Released 28/05/12 from the same archive.
The office building is under construction.
Engineering work is in progress to produce a plan for plant construction.

IMO, the only thing is holding up the deal is FIBR, nothing else. The construction date is going to be sooner than LNC announcement, because it seems to be NOW rather than 6 months from legal binding date.