Yitai Coal transferred surplus capacity replacement indicator

Inner Mongolia Yitai Coal Co., LTD. announced on the evening of November 28 that the company transferred the surplus capacity replacement indicator of 400 thousand tons of Talahao Coal Mine which is affiliated to it to Shaanxi Yanchang Petroleum Jingbian Coal Co., Ltd., with a total transaction price of RMB 22.6 million yuan.
 
According to the announcement, the Talahao Coal Mine is a 6 million tons/year new mine approved before the Document no. 7 [2016] issued by the State Council, which is responsible for resolving the surplus capacity of 1.2 million tons at a rate of 20%. The plan to reduce surplus capacity was approved by the State Energy Administration on July 12, 2017, and the capacity replacement was replaced by using the withdrawn production capacity of 1 million tons from Heichengzi Coal Mine of Inner Mongolia Yimeng Mining Co., Ltd. by means of market.
 
The Heichengzi Coal Mine was closed in 2016. It does not enjoy the central government's awards and subsidies. The capacity replacement index is converted according to 80% of the exit capacity. However, since the Talahao Coal Mine has reported the capacity replacement plan to the National Energy Administration before June 30, 2017. They can use the purchased capacity replacement indicator in a ratio of 150%.