Inner Mongolia coal reform heating up

Most of the rights and interests of coal in Inner Mongolia are in the hands of central and private enterprises. The government of the autonomous region needs to coordinate the interests of multiple parties.

On April 22nd, the National Energy Administration held a press conference to introduce the national energy economic situation and trend in the first quarter of 2011. When talking about accelerating the transformation of energy development methods, it specifically mentioned the need to steadily advance the restructuring of the coal industry, following Shanxi, After the coal reforms in Henan and Shandong, the coal reform in Inner Mongolia, the largest coal-producing province in China, was highlighted. It is pointed out that by 2013, the local coal enterprises in the Inner Mongolia region will be reduced from 353 to 80-100. On the scale, local enterprises will form large-scale coal enterprises with 1 to 2 billion tons, 5 to 6 5 million tons, and 15 to 16 million tons, and 20 of them will have business revenues exceeding 10 billion yuan.

In the past two years, Inner Mongolia’s coal production has grown rapidly, and has surpassed the previous “coal leader” Shanxi, and has been on top of coal production for two consecutive years. In 2009, Inner Mongolia's coal production reached 637 million tons, an increase of 37%, which surpassed Shanxi’s 615 million tons, ranking first in the country; in Inner Mongolia, it continued to lead, and the region’s coal production reached 787 million tons, making it the nation’s first coal output. Breakthrough 700 million tons of provinces. Shanxi Province followed closely. In 2010, it completed 714 million tons of coal production and continued to rank second.

On March 15th, the Inner Mongolia Autonomous Region Government issued a document on the “Work Plan on Merger and Reorganization of Coal Enterprises in the Inner Mongolia Autonomous Region”. This restructuring plan is also considered to be a further “upgrade” of the consolidation of coal companies in Inner Mongolia for several consecutive years.

Another three years in fact, from March 2005 to the present, integration of coal resources in Inner Mongolia has never been interrupted. Among them, the period from 2005 to the end of 2007 was known as the "three-year tackling battle" stage. From 2008 to 2010, it was considered as the phase of industrial upgrading.

According to the reorganization plan, the number of coal mines in the region has been reduced from 1,378 in 2005 to 551 in 2010 through the integration and technological transformation. The average single well production capacity has increased from less than 140,000 tons in 2005 to 1.4 million tons, and the resource recovery rate is from 2005. Less than 20% of the year is increased to 60%, the level of mechanized production is raised to over 90%, and mines below 300,000 tons are withdrawn from the market. The death rate of raw coal from one million tons is stabilized by 0.5 in 2005 at the present level of about 0.05, and the output of raw coal is from 2005. The 260 million tons increased to 787 million tons in 2010.

If it is said that the elimination of backward production capacity and the closure of small coal mines will be a three-year battle, the two years to accelerate the upgrading of the coal industry will be the upgrading year. The next three years will be the year of mergers and reorganizations. On March 16, Zhao Shuanglian, deputy director of the Inner Mongolia Autonomous Region Government, said at the merger and reorganization meeting of coal companies in the region: “The time for mergers and reorganizations is three years, and 2011 is the key year.”

The reorganization plan further pointed out that by the end of the “Twelfth Five-Year Plan”, raw coal output in the Inner Mongolia region will be controlled at 1 billion tons, of which 1.2 million tons and above wells and 3 million tons and above of open-pit mine production capacity will account for 70% of total production capacity.

Earlier, Fang Junshi, Director of the Coal Division of the National Energy Administration, said in an interview with the media that during the “12th Five-Year Plan” period, the country plans to use three years to reduce the number of coal companies from 11,000 to 4,000 through mergers and acquisitions. Coal companies With an average output of 800,000 tons or more, the coal resource recovery rate will increase to 40%. By 2015, domestic large-scale coal enterprise groups with an annual output of over 100 million tons will reach 6-8, and enterprises with an annual output of 50 million tons to 100 million tons will reach 10 or more."

Comparing the plans of Inner Mongolia and the National Energy Administration, we can see that in the future, the status of coal in Inner Mongolia can not be underestimated. One hundred million tons of enterprises account for one-third of the country's total, while 50 million tons accounts for about half of the country's total.

Qiu Shizhe, a researcher in the coal industry of China Investment Advisors, believes that the merger and reorganization of coal enterprises in Inner Mongolia is of great significance for safeguarding the safety of the coal industry. The merger and reorganization of enterprises to build large-scale coal groups is of great significance for improving coal recovery and comprehensive utilization. After the merger and reorganization, the improvement of mechanization level will help improve the level of coal mining, achieve intensive and large-scale mining, and avoid the appearance of predatory mining.

A person who knows Shenfeng, a person who understands Inner Mongolia’s coal industry, believes that according to the list of 44 coal backbone enterprises issued by the Autonomous Coal Bureau on April 25, Shenhua Group, China’s largest coal company, has six short-listed companies, and the power giants Guodian and Huaneng There are two; if divided by region, 24 of the 44 companies are located in Ordos, 6 in Wuhai, and 4 in Hulunbeier. The identity of the 44 is also more complicated. There are state-owned enterprises, shareholding cooperative companies, and private companies that have just been listed; according to the list of remarks, these 44 companies are divided into key enterprises, key coal companies, and enterprises that cultivate 10 billion yuan. Categories. No matter how it is divided, these 44 companies will undoubtedly be the protagonists of this merger and reorganization.

According to the reorganization plan, the target of the merger and reorganization is the coal enterprise with independent legal person qualification in the autonomous region, with the focus on local coal production enterprises. Undoubtedly, large-scale state-owned enterprises in the region will play an important role in mergers and reorganizations.

The aforementioned sources said that the reason why the merger and reorganization plan in Inner Mongolia does not seem so clear is because the coal pattern in Inner Mongolia is different from that in Shanxi: the sole proprietorship of local governments, holdings, and shareholdings are few, and most of the rights and interests are in the hands of central and private enterprises. The government needs to coordinate multiple interests.

It can even be said that in Inner Mongolia, state-owned enterprises and private enterprises are evenly matched in the share of coal resources, and the confrontation between the two camps also exists for a long time. The problem of fund reorganization in the merger process and the debt problems of the integrated target are all long-term. Negotiated resolution.

According to the reorganization plan, the first half of 2011 will be the preparatory stage for mergers and reorganizations. Both the merger entity and the target of merger will also be confirmed in the first half of this year. During the second half of 2011 to 2013, it will be the implementation phase of mergers and reorganizations. If the merger company does not have substantive mergers and reorganizations within two years, it shall cancel the qualification of its merger subject according to the procedure.

“Compared with the previous two integration efforts, this round of mergers and reorganizations can be said to create a regional group stage. If the rectification plan is successfully completed, the basic pattern of the coal industry in Inner Mongolia will be finalized in the future, and it may still have an industrial structure. Minor adjustments, but the integration of big moves should not happen anymore,” said Lin Boqiang, director of the China Energy Economic Research Center at Xiamen University.

In recent years, with the formation of a global industrial chain, mergers and reorganizations have become a global phenomenon. Peabody, the world's largest coal company, achieved a total of 246 million tons in 2010 through a series of mergers and acquisitions, with sales of US$6.86 billion. The Shenhua Group, established in 1995, has become a leader in the Chinese coal industry through rapid development.

Coal-producing provinces of all kinds are gradually merged and reorganized and gradually evolved into the era of oligopoly in the province. Shanxi's coal industry has undergone mergers and reorganizations, forming an oligarchic situation dominated by six coal companies in the province; Shandong has established the Shandong Energy Group on the basis of six coal companies, and the province’s coal industry has formed Shandong Energy Group and Yankuang Group. The new pattern of Henan: Henan has basically formed a four-point situation in the world; Hebei has also formed a pattern of double giants in the north and the south.

However, according to national plans, by 2015, domestic large-scale coal enterprise groups with an annual output of more than 100 million tons will reach 6-8, and annual production of 50 million tons to 100 million tons will reach 10 or more, which means the formation of large-scale coal groups. It will be an important strategy for the coal industry in the coming years. Under the background of mergers and reorganizations, in Inner Mongolia, where the integration policy is relatively open, major companies have also rushed through the region.

On February 18, Liaoning Tiefa Coal Industry Group Co., Ltd., which is adjacent to Inner Mongolia, established Inner Mongolia Rio Tinto Energy Co., Ltd. in Inner Mongolia. Shandong Yankuang Group also announced in February this year that its wholly-owned subsidiary, Yanzhou Coal Ordos Nenghua Co., Ltd., obtained the mining rights of Longwan Minefield, Dongsheng Coalfield, Erdos, Inner Mongolia, by way of competitive bidding. The project investment amounted to 7.8 billion yuan.

Zhang Yanlin, research director of China Investment Consulting Co., Ltd. pointed out that coal industry mergers and reorganizations can not be confined to a certain province or city, but must be integrated from a more macro perspective. While it is of positive significance for coal mergers and reorganizations in Inner Mongolia, it is necessary to strengthen the integration of regional coal resources and achieve complementary advantages. For example, Inner Mongolia can strengthen coal cooperation with neighboring provinces such as Ningxia and Shanxi to achieve coal cross-regional integration.

In fact, Yankuang Group also cooperated with Peabody to develop coal resources in Xinjiang Wucaiwan District, and Peabody also invested in brown coal resources in Xilinhot. At the same time, the state-owned enterprise camps represented by Shenhua Group and China Coal Group have already penetrated into coal resources gathering grounds. Shenhua Group has subsidiaries in Ningxia, Inner Mongolia and Xinjiang.

In addition, under the guidance of the country's policy on coal and electricity integration, the five major power generation groups have merged and restructured coal companies to conduct cross-industry integration. For example, Datang Group set up a coal industry limited liability company in 2009. Huaneng and China Power Investment have all reorganized coal companies and established a coal and electricity integration consortium.

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