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Message: Partnership agreement in China

Partnership agreement in China

posted on Sep 09, 2009 10:17AM

Back in June 2008, ACT signed a binding partnership agreement with two entities in China. The names of these entities were never disclosed. (Quote from Research Capital: "Ultimately, the agreement will result in a JV with a mining technology developer that is a wholly-owned subsidiary of a large Chinese coal mining company and an established provider of mining services to the Chinese coal mining industry.")

I wonder if ACT is doing business with these guys:


China National Coal Group Corp. (ChinaCoal)
http://www.chinacoal.com/n1071/n89484/n94067/103440.html

With a total asset of more than 100 billion Yuan and the turnover of 71.9 billion Yuan in 2008, China National Coal Group Corp. (ChinaCoal) is a state-owned enterprise under the State-Owned Assets Supervision and Administration Commission of the State Council.

ChinaCoal's core businesses cover coal production and trade, coal chemistry, coal-bed methane exploration, pit-mouth power generation, coal mine design and construction, coal mining equipment manufacturing, and relevant engineering technical services. ChinaCoal now has 21 wholly-owned or jointly-owned subsidiaries and equally shared companies, 4 overseas offices and partly owns 11 other companies. Our corporation has three publicly listed companies, including Hong Kong-listed China Coal Energy Company Ltd. (HKSE:1898). CODCO is part of China Coal Energy Company Ltd.

China Coal Energy Company Limited (China Coal Energy)
http://www.chinacoalenergy.com/eng/gsgl.asp?nodeid=46&chileid=47
China Coal Energy Company Limited (China Coal Energy), a joint stock limited company,was exclusively initiated by China National Coal Group Corporation on August 22, 2006. China Coal Energy was successfully listed in Hong Kong on December 19, 2006 and finalized A Share issue in February 2008.
China Coal Energy has been one of the large energy conglomerate which integrates relevant engineering and technological service businesses comprising coal production and trading, coal chemical, coal mining equipment manufacturing, pit mouth power generation, coal mine design etc. China Coal Energy boasts abundant coal resources and its coal reserves rank the fifth place among all the listed coal enterprises in the world and the second place in China. Coal production of China Coal Energy reached 100.37 million tons in 2008 and China Coal Energy is the second largest coal enterprise and the largest manufacturer of coal mining equipment in China. It also enjoys the title of one of the largest coal exporter and independent coking enterprises in China.
After several years of accumulation and development, China Coal Energy has excelled in the aspects of admirable advantage of resource, integrated business structure, advanced coal mining and washing technology, powerful network of marketing and customer services, a solid management team with rich operating experiences, reputable product brands. China Coal Energy which shall be energy-oriented will seize the market opportunity, rely on the science and technology progress, accelerate the pace of development, strive for steady growth of revenue and profit, and maximize long-term profits for shareholders.


China National Coal Mining Equipment Co., Ltd.
(wholly-owned subsidiary of China Coal Energy Company Limited)
http://www.chinacoalenergy.com/eng/gsgl.asp?nodeid=46&chileid=61
China National Coal Ming Equipment Co., Ltd. (CME) is the largest and leading underground longwall mining equipment designer, manufacturer and supplier in China. By providing total solutions for underground coal mining, CME has become the first choice for many customers in coal mining industry at home and abroad. CME is the only exporter of complete fully-mechanized longwall equipment with more than 10 years' experience and expertise.

By now, CME has distributed more than 3,000 sets/systems of heavy-duty longwall mining equipments and more than 70,000 sets of conventional mining machines, to a number of key state-owned coal mines and rural and private coal mines both at home and broad, such as Russia, India, Turkey, Vietnam, and Bengal, even in United States.

In the immediate-term, ACT is probably focused on commercializing ActiveMine in the US. However, I'm sure that investors would warmly greet any news of progress made on the China front. The Chinese underground coal mining industry ==> Potential revenues of $3 billion up for grabs.

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