lignite, inner mongolia and datang, page-15

"China’s power-station coal price rose to the highest level in three years as power stations and central heating plants built up stocks to meet winter demand.

Coal with an energy value of 5,500 kilocalories per kilogram rose 0.6 percent to a range of 850 yuan ($133) to 860 yuan a metric ton as of yesterday compared with a week earlier, according to data today from the China Coal Transport and Distribution Association. That’s the highest price since Oct. 20, 2008."

"Inner Mongolia autonomous region's Xilin Gol League, which has the richest brown coal reserves in China, plans to build 24 large-scale coal mines and eight clusters of coal-fired power plants during the 12th Five-Year-Plan (2011-2015)"

In view of your comments Tom....

Lets dissect the above statement from a recent article:

Here we are end 2011 - and Inner Mongolia are going to:

"build 24 large-scale coal mines and eight clusters of coal-fired power plants during the 12th Five-Year-Plan (2011-2015)"

Appears to be a disconnect to me. China to my knowledge is not building more BROWN coal boiler p/stations. They are firmly into phasing out those and moving to USC boilers that must have feedstocks like Coldry/Qinhuangdao 5,500 kilocalories per kilogram.

So how can China fulfil their IMongolia 5 year plan? - how can they plan/build massive power plants in a region that only has brown coal... with USC boilers the ONLY possibility - unless they 100% KNOW what fuel they will be burning for 30 years?

I don't understand this - seems The Chinese have to find/commercialise drying techs asap. Actually - they need to have the drying plants in operation pronto ... 2013 -2014 to supply the "eight clusters"...just maybe ECT's Inner Mongolia Chairmans address mension has real merit. ...re production possible 2014?

The only other alternative is the Chinese have massive committments to import Newcastle eqiv coal. But the firm directive from Jan 2012 by the Chinese is that...

"Coal import demand from China, the world's largest producer and consumer of coal, may be dampened by the government's move to cap benchmark spot prices with a heating value of 5,500 kcal/kg at 800 yuan a tonne beginning January."

800 yuan is about AU$126 atm....with forecasts heading higher. So why is China/Inner Mongolia discouraging 5,500 kcal/kg imports, at a time when they are building massive plants to burn 5,500 kcal/kg coal long term - when they ONLY have brown coal?

The logical conclusion is IM/China have a commercially proven "solution" in mind that they are going to run with - but that does not seem the case. The microwaving mob got a $350 mill deal last week - but the "eight clusters of coal-fired power plants" need more than that.

Seems to me there is going to be a "cluster" of drying solutions that China embraces....very very soon

First things firsts though. Raise the $3.8 mill or close to - have to like the recent market action re buys at 0.6...oppie buys/the 20 mill 5c oppies that inspire some confidence - but we want to see directors have indeed secured the stage 1 DFT and therefore underpinned stages 2/3. Money talks. Sink or swim.

Fascinating end of 2011 coming up!

http://mobile.bloomberg.com/news/2011-10-24/china-qinhuangdao-coal-price-increases-to-three-year-high-on-winter-demand