China Coal Energy delays Heilongjiang coal chemical project
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The last edit to this post was made by jordan569 on 2013-1-6 at 22:25. The board of directors of China Coal Energy Corporation has decided to postpone one of the projects funded through capital raised from A-share offerings: a coal mine with an annual production capacity of 10 million tons, a methanol plant with an annual output of 1.8 million tons, an olefins plant with an annual output of 600,000 tons, along with related infrastructure projects； To date, 12 million yuan has been invested in this project. Since the aforementioned projects can no longer achieve the original expected economic benefits, the company will explore improvement and alternative solutions. -------------------------------------------------------------------------------------- Some companies are starting to give up, and this is actually a good thing – it serves as a reminder to those investors who are rushing in to be more cautious! ! This post was last edited by Zhenzhen Youci on 2009-3-30 15:59. Note: $ # , $ $
12 million yuan; if a feasibility study is conducted on the project, this 12 million yuan can be considered a sunk cost. Making technical improvements might just be an excuse; generally, few people take action without planning first.
If they can’t afford the money, they want to give up.
The main issue is still the raw coal; the mines aren’t up to par, so we can only rely on developing other projects, which are currently in the planning stage.
Could it also be related to the recent drop in oil prices and the change in leadership?
Those who know when to act are truly wise. Companies need to focus on economic efficiency and must not waste money. Given the current poor economic situation, there is no need to pursue projects that do not generate profits just for the sake of achieving political achievements. With an excess supply of coal in the country, there is also no need to start new coal mining projects at this time.