Guanghui Shares See Another Increase in Holdings by Major Shareholder; Coal-to-natural gas product sold to Sinopec

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The last edit to this post was made by lflsedin on 2012-1-5 at 08:29. On January 5, 2012, at 08:05, the Shanghai Securities News reported that Xinjiang Guanghui Group, the controlling shareholder of Guanghui Co., Ltd., increased its holdings once again. The company announced today that Guanghui Group increased its holdings in the company’s shares by 2.0178 million shares through the Shanghai Stock Exchange’s centralized competitive bidding system. According to the announcement, since its first share purchase on October 12, 2011, Guanghui Group has accumulated a total of 21.6478 million shares of the listed company, accounting for 1.11% of the company’s total issued shares. As of December 30, 2011, Guanghui Group held 827 million shares of the listed company, accounting for 42.50% of the company’s total issued shares. The company disclosed on the same day that on December 30, 2011, it signed a Framework Agreement on the Purchase and Sale of Coal-to-Natural Gas with Sinopec. It is planned to sell the 4 billion cubic meters per year of natural gas produced in Phase 1 of the Fuyun County coal comprehensive development project – a project scheduled to begin construction in 2012 and is expected to go into operation by 2015 – to Sinopec. The start date for these sales is tentatively set between January 1 and December 31, 2015, with a contract duration of 30 years. The selling price will be determined through negotiation between the two parties in accordance with **relevant regulations**, taking into account the costs of coal-to-natural gas production as well as the market affordability of natural gas at the downstream level. The company stated that, given that Sinopec has planned to build two pipelines for transporting coal-derived gas from Xinjiang, including the Xinyuezhe Pipeline and the Xinlu Pipeline, the aforementioned purchase and sales framework agreement will help to fully leverage the company’s advantages in terms of coal resources located in the Kamsite mining area of Fuyun County in the Altay region.