Ordos Coal Mine Integration Opens

The new round of integration of Ordos Coal has entered a critical period. Until June of next year, there are 280 coal mines to be integrated, and Inner Mongolia Autonomous Region has allocated 40 merger and reorganization indicators for Erdos, which means that about 7 coal mines should be integrated into one main enterprise. If the integration is successful, by the next year, the number of coal companies in Ordos will be greatly reduced.

At present, the Ordos City Government has already established 8 merger entities such as Itai, Hui Neng, Manshi, Wulan, Mengtai, and Taihong. For these main companies, no less than five integration targets have been established. Coal enterprises with a production scale of less than 3 million tons will all be withdrawn from the market.

In Ordos, where transport capacity has long been lagging behind, Inner Mongolia has introduced a "transport priority" policy to encourage companies to accelerate the pace of integration and increase production capacity. For example, the merger and reorganization plan stipulates that if the production capacity exceeds 10 million tons after the merger and reorganization, it can be given to railway transportation accounts, with more than 20 million tons, giving priority to the railway transportation capacity. At the same time, it is also considered that the coal resources surrounding coal mines that are merged and reorganized will also be preferentially allocated to the enterprises of the previous scale.

“Now it is the period in which each company negotiates with each other. However, now the price is too high, we have to wait.” A person in charge of coal mines that has acquired the qualification of the merger told the reporter that the price of the coal mine acquisition is too high now. In a stalemate. He is not optimistic about completing mergers and acquisitions by the end of June next year. The stalemate in the negotiations may be final before changes can be made.

The price for the transfer of coal mines is generally calculated on the basis of the retained reserves of coal mines, and is calculated at a price of about 40 to 100 yuan per ton of reserves. In this way, the purchase price of a coal mine is often over one billion or several billion.