Stalemate in the restructuring of Datang Coal Chemicals; is the launch of Fuxin’s coal-to-gas project still a long way off?
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Stalemate in the restructuring of Datang Coal Chemicals; is the launch of Fuxin’s coal-to-gas project still a long way off? Author/Source: Date: 2015-11-23 Clicks: 6 The construction of Liaoning Datang International Fuxin Coal-to-Natural Gas Co., Ltd. (hereinafter referred to as “Fuxin Coal-to-Gas”) remains stalled, and various indications suggest that prospects for progress on this project in 2016 are also poor. Reporters learned from relevant sources that the restructuring efforts related to the coal chemical sector projects initiated by Datang International Power Generation Co., Ltd. (hereinafter referred to as \"Datang Power\", 601991.SH) in mid-2014 have not progressed smoothly. Shenhua Group Co., Ltd., the company that was once seen as a promising successor, showed interest only in one of the five coal chemical projects sold together by Datang. However, the proposal was put on hold due to difficulties in reaching an agreement regarding asset impairment. There are reports that another option is under consideration: Datang Power, Shenhua Group, and China State Capital Investment Corporation Limited (hereinafter referred to as “State Capital Investment”) would jointly form an entity to handle coal chemical projects. One of the conclusions reached by the central inspection team during its inspection of Datang Power in 2015 was that blind investment in industries other than power generation had resulted in a large amount of inefficient and ineffective assets. The Fuxin coal-to-gas project, for which the cumulative investment has reached 14 billion yuan, may serve as a typical example of Datang Power’s reckless investments. The reporter also made a special phone call to key officials at Datang Energy Chemical Company to request an interview, but as of the time of publication, they had not responded. The Fuxin project remains stalled. Ten months later, on November 10, reporters visited the Datang Fuxin coal-to-gas project again, and found that little had changed since the beginning of the year (see the report from January 2015: “Datang Fuxin Coal-to-Gas Project Turns into a Problematic Project; 14 Billion Yuan in Investment On Hold”). Infrastructure such as office buildings, factories, employee dormitories, and canteens has already been put into use, but the factory area is empty and quiet; aside from occasional vehicles coming in and going out and employees walking around, there are no signs of any construction, work, or production activities. However, according to the guards at the entrance, currently around 1,000 people still report for work each day at the Fuxin coal-to-gas plant. “The Fuxin project has been on hold; although the announcement regarding its suspension was issued only at the end of last year, work on it stopped gradually back in 2013. ”According to informed officials in Fuxin. Reports from within Datang indicate that Datang Power’s investment plans for 2016 do not include any provisions for the Fuxin coal-to-gas project, which means that no progress will be made on this project next year. Furthermore, according to multiple investigations by reporters, at present, the Fuxin coal-to-gas project is facing difficulties and incurring enormous costs. “Just the financial costs for this project amount to 1 billion yuan per year, and it hasn’t started operations yet – where will this money come from? There are still many facilities and equipment that haven’t been completed; some are only half-built ； The completed pipelines, equipment, facilities, materials, etc., need to be maintained and stored; this incurs an annual cost of approximately 100 million yuan. ”The aforementioned local Fuxin official with insider knowledge said. Regarding the possibility of further investment by Datang, the person was not optimistic. “It was supposed to be completed in 4 years, but after 6 years, it remains on hold. Even if efforts to move it forward resume in the future, extensive adjustments and renovations will undoubtedly be necessary; the entire project has already lost its original form. ”The individual said that if things are delayed for a few more years, the various costs will become unbearable; it would represent an endless drain of resources for investors. “For Datang as well, it’s currently a problem with no solution – it can neither be ignored nor handled effectively.” ”The person said. It is also understood that the internal management of Fuxin’s coal-to-gas project is facing difficulties as well. “The situation with the Fuxin project has led many people to want to switch to Datang’s power system, but their employment contracts are currently on hold. Before the restructuring, no one’s job will be transferred. ”According to insiders at Fuxin Coal-to-Gas. “Currently, no payments are being made to external parties. However, various equipment suppliers and construction contractors keep demanding payment, leaving the management completely overwhelmed. ”The insider mentioned that salaries are not paid on time either, and in order to maintain employees’ morale, various sports competitions and recreational activities are regularly organized for them. Public records show that the Fuxin coal-to-gas project, invested in by Datang Power, was approved by the National Development and Reform Commission in March 2010, after which construction commenced. The total investment amounted to 24.57 billion yuan. The project’s planned production capacity is 4 billion cubic meters of coal-derived natural gas per year (equivalent to 12 million cubic meters per day). It was originally scheduled to become operational in December 2014. The coal-to-natural gas produced in Fuxin will supply cities in the surrounding areas of the Northeast, such as Fuxin, Shenyang, Tieling, Benxi, and Fushun, with natural gas. On December 22, 2014, Datang Power Generation stated that the company plans to sell its coal chemical business and has suspended the construction of the Fuxin coal-to-gas project. By the time construction was halted, a total of 14 billion yuan had been invested in the project. Blind investment ultimately leads to regrettable consequences. From February 28 to April 30, 2015, the 11th Central Inspection Team conducted a special inspection of China Datang Group Corporation. One of the inspection conclusions reached by the inspection team was that the decision-making process regarding matters of significant importance was violated, with investments being made blindly in industries other than those related to electricity, resulting in a large amount of inefficient and ineffective assets. Industry insiders said that Datang made blind investments in non-power industries, with this trend being most evident in the coal chemical sector. “The processes and procedures involved in the chemical industry are extremely complex; they cannot be achieved simply by throwing money at the problem. As a company dedicated to the thermal power sector, Datang lacks both the technology and skilled personnel, and has little to no understanding of the coal chemical industry. Nevertheless, it rashly made large-scale investments. This decision will undoubtedly come at a huge cost for them; the outcome might even be that they pay a heavy price without actually learning anything from it. ”The industry insiders mentioned above said. It is said that when Datang made its investment decision, the situation was relatively optimistic; at that time international energy prices were high, with crude oil costing around $140 per barrel, while now the price has dropped to almost $40 per barrel. Although coal prices have also fallen, oil and natural gas prices have dropped even more. The conditions in the market have changed significantly compared to before. It has proven that although Datang has recruited many top-tier talents in the chemical industry through various channels, for coal-to-gas projects lacking any existing domestic or international experience, it still has to proceed by “feeling the way across the river by touching the stones”. “The development of key core technologies for equipment, the selection of appropriate designs, and the optimization of processes were all advanced through ongoing research; the coal-to-gas project in Keshiketeng Banner, Inner Mongolia, had to replace its large-scale equipment on multiple occasions. ”Officials from Liaoning Datang said that this leads to continuous increases in budgetary investment, which also severely affects the economic viability of the project. Keqi is Datang’s first coal-to-gas project, and to this day this industry remains the subject of criticism from many experts, primarily due to its high level of pollution and lack of economic efficiency ； Secondly, there is also much debate regarding whether converting coal into gas for subsequent use constitutes an effective way of utilizing energy. “The Keqi project was originally a demonstration project for coal-to-gas conversion; the plan was to summarize the experiences gained after the final acceptance and completion of the project, before proceeding to implement other similar projects. ”The aforementioned person from Liaoning Datang said. However, even though the Keqi project had already started operations, it had not produced any results, benefits, or insights, and many technical issues had not been fully resolved; as a result, Datang decided to launch another project in Fuxin. “The process routes for the Fuxin project and the Keqi project are exactly the same; in other words, it is a complete replica of the Keqi project. The difference is that the gas from Keqi is sent to Beijing, while the gas from Fuxin will serve Liaoning. ”The aforementioned officials from Liaoning Datang said that even if it were able to start operating, it would still incur losses, and it could not escape the fate of suffering losses as soon as it began operations. The continuous large-scale investments by Datang Power in its coal chemical business have resulted in high levels of debt for the company. As of the first half of 2014, the total assets of Datang’s coal chemical business segment reached 75.125 billion yuan, while its total liabilities amounted to 63.621 billion yuan. This figure represents 40% of the company’s overall liabilities ； During the reporting period, the coal chemical business unit of Datang Power Generation incurred a loss of 1.367 billion yuan, a figure that was 1.65 times higher than in the previous year; its debt-to-asset ratio reached 84.69%. Some experts in the coal chemical industry who wished to remain anonymous pointed out that the successive failures of projects such as Datang Fuxin Coal-to-Gas have imposed the burden of high pollution and high energy consumption on an already struggling coal chemical industry. Shenhua refused to take over or establish a new platform. In July 2014, Datang Power and Guoxin Holdings signed a restructuring framework agreement aimed at reorganizing the coal chemical sector and related projects. The scope of the restructuring includes: Duolun Coal Chemical, Keqi Coal-to-Gas, Fuxin Coal-to-Gas, Hulunbuir Fertilizer, Xilinhot Mining, as well as related supporting and affiliated projects. As the largest potential buyer, Shenhua Group, together with SASAC, evaluated each project. According to internal information from Datang Power, following the evaluation, Shenhua Group is only interested in the Tolon coal chemical project and has no greater interest in the other projects. In order to allow Shenhua Group to take over, Datang Power was even willing to make difficult sacrifices; it decided to offer Shenhua 6 high-quality thermal power plant projects located in Keqi, Xilin Gol, Dolun, and other areas, but this still failed to persuade Shenhua. Not only that, but according to people familiar with the matter, even just in order to take over one of Dorun’s projects, Shenhua requested a write-down of 5 billion yuan, using its Baotou coal-to-olefins project as a reference. Public information shows that the Shenhua Baotou coal-to-olefins project commenced construction in September 2007 and was fully completed in May 2010, with a total investment of 16.5 billion yuan. At the beginning of its preparation, the Datang Power Lunmei Chemical Project announced a total investment amount of 16.2 billion yuan; by the end of 2012, the actual investment amount exceeded the estimated figure by 6.179 billion yuan. Datang Power does not accept a depreciation of 5 billion yuan, while Shenhua insists on not taking over unless there is such a depreciation; the two parties fail to reach an agreement, and the negotiations reach a deadlock. As for why the Dolun project exceeded its budget by billions of yuan, some clues can be found in a report in the media regarding the fact that \"Datang purchased catalysts worth 20 million yuan for the Dolun coal chemical project, only for those catalysts to become expired and unusable.\" “Delays in project completion lead to waste during the investment process, which is not uncommon. Optimistic estimates suggest that production can start soon, so large quantities of raw materials are purchased; yet if production does not commence on time, those materials become useless and expire ； There are also numerous losses resulting from the modification and refurbishment of equipment and facilities. ”The aforementioned person familiar with the matter said. “Shenhua refuses to take over; even the State-owned Assets Supervision and Administration Commission has no power to compel it. In reality, the first attempt by China Datang Corporation to restructure by spinning off its coal chemical segment ended in failure. ”The insider said. Additionally, sources say that a new cooperation plan is currently under discussion: Datang Power, Shenhua Group, and Guoxin Holdings are jointly exploring the establishment of an organization dedicated to managing coal chemical projects. For now, Shenhua Group, which has achieved several major breakthroughs in the coal chemical sector, is unwilling to give up on new coal chemical projects such as coal-to-methanol, coal-to-oil, and coal-to-olefins. In other words, even if new cooperation models are proposed, Shenhua Group will not relinquish control over the newly established entities. This also means that by then, Datang will not only have to give up the coal chemical projects for which it has already invested heavily, but it may also find itself in a passive position regarding shareholding structures. http://www.nmtech.com.cn/*nwen_mhg_xx.asp?id=173422
Whoever is responsible should bear the responsibility. So far, no one has stepped forward to take responsibility. I really don’t know what to say; all those inspections were for nothing.
I heard that the coal-to-gas plant in Fuxin has started operating – is that true or not?
Why 12 environmental inspections failed to stop industrial wastewater leaks – An investigation into the pollution problems at Datang Inner Mongolia Dolun Coal Chemical Project. Author/Source: Date: 2016-06-03. Clicks: 14. The incident of Datang Inner Mongolia Dolun Coal Chemical Co., Ltd. illegally discharging sewage has recently attracted widespread attention from the public. Reporters from Xinhua News Agency’s “Xinhua Viewpoint” conducted on-site investigations and found that the company in question has repeatedly experienced problems related to pollution in terms of sound, light, and odor in recent years. Environmental protection authorities carried out 12 inspections and checks on the risks associated with the company’s evaporation ponds and ordered it to make corrections, but with little effect. In April this year, piping occurred in the notoriously problematic evaporation pond, resulting in environmental contamination. To this day, over 1,000 residents still rely on purified water for their daily needs. Pipe erosion occurred in an evaporation pond; highly saline industrial wastewater contaminated residents’ wells. Since early April, dozens of barrels of purified water have been stored daily in the yard of Zhang Wangui, the leader of Group 3 in Erdaowa Village, Duolun’er Town, Duolun County, Inner Mongolia. “All this water is **provided; team members basically come here once a day to get it, and even the water needed for washing and cooking has to be brought in by tankers from elsewhere. ”Zhang Wanguì said. “Now even the livestock dare not be given water from the well,” complained villager Pan Jinzhi. “The cows in my family have been suffering from stomach problems after drinking water from the well, and they’ve lost a lot of weight.” ” The villagers’ troubles stem from the pipe failure in the evaporation pond at the Datang Duolun coal chemical project on April 4th. They told reporters that after the accident, the vegetation in areas where wastewater flowed was significantly less healthy compared to other areas, and the water from wells in those surroundings could no longer be consumed. Near the evaporation pond where the piping incident occurred, the reporter saw that the pond, with a capacity of 437,500 cubic meters, had long since dried up; beneath the remaining solids, a mottled black waterproof membrane was visible. Standing on the old dam, an odd smell could still be detected. “At that time, the sewage that surged out was only about 400 meters away from the nearest residents, and its depth reached up to their chests. ”When recalling what happened during the piping incident, Liu Quanyou, a villager from Erdaowawa Village, still feels shaken. “Fortunately, the response was prompt; otherwise, the consequences would have been unpredictable.” ” Liu Xiao, deputy general manager of Datang Inner Mongolia Duolun Coal Chemical Co., Ltd., told reporters that the water flowing out of the evaporation ponds is reclaimed water treated by environmental protection equipment, and it will not contaminate the soil or groundwater. To prove that the treated liquid was harmless, Hao Jun, the director of safety and environmental protection at Datang Energy Chemical Co., Ltd., even drank a sample of the liquid himself, saying it was \"just a bit salty\". However, environmental monitoring personnel from the Duolun County Environmental Protection Bureau found that on April 4, at three monitoring points downstream of the evaporation pond dam, the maximum measured concentration of chlorides reached 5,709 mg/L. This value is 21.8 times higher than the Class III standard set in the “Environmental Quality Standards for Surface Water” ； The highest measured value for total soluble solids (total salt content) was 15,419 mg/L. “We believe that the water flowing out during the piping incident is highly saline industrial wastewater. After several days of continuous monitoring, it has been determined that the incident has contaminated some shallow wells in the surrounding villages. ”Luo Qingjun, head of the Environmental Monitoring Station at the Dolun County Environmental Protection Bureau, said. Reporters learned in Duolun County that since the water quality from some shallow wells still fails to meet standards, villagers must continue to drink purified water. The timeline for putting an end to this situation remains uncertain. 12 environmental inspections carried out – pollution still occurs frequently. With the gushing issues yet to be resolved, Datang Dolun Coal Chemical Company was recently exposed to dumping sewage using tank trucks; the vehicles used for this illegal discharge were seized by local villagers. According to interviews with journalists, in addition to the problem of illegal discharge of wastewater, frequent environmental issues such as noise, strong light, and unpleasant odors have given these companies the impression among the public as being unwilling to change their behavior. According to Liu Quanyou and Zhang Wangui, who discovered the tank trucks, on May 25th they saw three large tank trucks pouring liquid on the road next to the village that leads to the ash dump of the Datang Dolun coal chemical project. “These liquids have a pungent smell and don’t seem like normal water. ”Liu Quanyou said that out of concern, they gathered the villagers on the 26th to block the vehicles that were still pumping water out. Zhang Zhiming, deputy general manager of Datang Inner Mongolia Dolun Coal Chemical Co., Ltd., explained that the liquid dumped by these three vehicles was qualified reclaimed water that had been treated by the company; it was used for dust suppression. The yellowing color and unusual odor were due to inadequate cleaning of the rented vehicles, and it would not cause any pollution to the environment. Tests conducted by the Dolun County Environmental Monitoring Station showed that both the samples taken from inside the vehicle and those from the source liquid exceeded the first-level standards set in the \"Comprehensive Wastewater Discharge Standards\" (COD ≤ 60). The levels of characteristic pollutants such as sulfates and chlorides were high, indicating that it was salt-containing wastewater. In accordance with relevant legal provisions, the Environmental Protection Bureau of Duolun County determined that Datang Duolun Coal Chemical Company was suspected of discharging pollutants illegally using vehicles; the involved vehicles were seized, and the relevant personnel were placed under administrative detention. The reporter learned from the Environmental Protection Bureau of Duolun County that since 2014, the environmental protection authorities have conducted 12 inspections of Datang Duolun Coal Chemical Company regarding the hazards associated with the evaporation ponds. They issued multiple notices to the company urging it to carry out repairs and improvements to those ponds, but with little effect. During the interview, villagers living near the enterprise told the reporters that in recent years, the Datang Duolun coal chemical project has had a severe impact on their lives, with serious pollution in terms of noise, light, and odors. “The smell is pungent, the noise is harsh, and the light from it is blinding; for over 300 days a year one doesn’t dare to open the windows. It can illuminate even the darkest surroundings, rendering street lights unnecessary. ”Liu Quanyou said. Hao Jun said that as a pilot project, the company will inevitably have some problems to varying degrees, and he hopes the outside world can understand this. However, some grassroots officials believe that the Datang Duolun Coal Chemical Project is a model project and should take the lead in strictly enforcing environmental protection standards. ” Local environmental protection agencies can only conduct routine inspections and order corrections. It is understood that the Datang Inner Mongolia Dolun coal chemical project began construction in 2006. The company is affiliated with Datang Energy & Chemical Co., Ltd. and is under the overall supervision of Datang International Power Generation Co., Ltd. By reviewing relevant documents from the Environmental Protection Bureau of Duolun County, reporters found that in recent years, the local environmental protection authorities had issued dozens of documents to Datang Duolun Coal Chemical Industry, emphasizing environmental protection issues; nearly twenty of these documents addressed the risk of leaks from evaporation ponds as well as pollution caused by noise, light, and odors. It turned out that these issues were not resolved in a timely manner, and the relevant officials of the company denied in interviews with journalists having received any notices or warnings from environmental protection authorities regarding the risks associated with the evaporation ponds. Officials from the environmental protection department said that at present, apart from routine inspections and orders to make corrections, there are no better ways to urge local enterprises to enhance their environmental awareness. ““As a third-level environmental monitoring station in the western region, we can only do our best to fulfill our duties by carrying out regular supervision and monitoring, but our methods and capabilities are often limited,” said Shi Junfeng. As a key player in environmental protection, Datang Duolun Coal Chemical Industry lacks a proper emphasis on environmental protection and has an insufficient awareness of its responsibilities; objectively, it still needs to improve in terms of technology and the management level of its production facilities.
After divesting its coal chemical business, Datang receives an initial capital injection of 1.2 billion yuan. Author/Source: Date: 2016-07-18 Clicks: 10 After many difficulties, Datang Power (601991.SH) finally announced its intention to transfer the coal chemical division to its major shareholder; however, getting rid of this heavy burden was not easy. On July 12, Datang Power Generation announced that in order to meet the funding needs for principal and interest repayment sowie the essential expenses related to operations and production at Dolun Coal Chemical and Xilinhot Mining, it would provide them with entrusted loans totaling 1.1 billion yuan and 100 million yuan respectively. Dagang Power Generation had previously promised to exempt the relevant companies from entrusted loans totaling up to 10 billion yuan following the transfer of the coal chemical assets. After Sinogreen gave up on acquiring the coal chemical business unit of Datang Power, Datang Group finally decided at the beginning of the month to use the newly established Sinocenergy Chemical Technology Co., Ltd. (hereinafter referred to as Sinocenergy Chemical) to acquire the relevant assets for 1 yuan each. The assessment report indicates that the management of the relevant company is unable to predict the company’s future profitability; therefore, the income approach was not used for valuation. The valuation of the coal chemical-related assets being divested in this case is -8.336 billion yuan. It is worth noting that Datang Power will still have to pay a high price if it wants to get rid of its coal chemical business, which incurred losses of 4.3 billion yuan in one year. In accordance with the relevant terms of the transaction, including this entrusted loan of 1.2 billion yuan, Datang Power Generation is also required to waive 8.336 billion yuan in entrusted loans owed by the enterprise being divested on the asset transfer date – that is, entrusted loans equivalent to the losses incurred during the transition period. It is also a focus of concern in the industry whether Zhongxin Nenghua, with a registered capital of 1 billion yuan, will be able to handle guarantees worth nearly 18.5 billion yuan. In response to this, on July 12, reporters from the Daily Economic News tried to contact the secretary office of Datang Power Generation by phone on several occasions, but as of the time of publication, they were still unable to get through. Another round of financing via entrusted loans: On July 11, Datang Power Generation signed a Trust Loan Agreement with the Railway Branch of China Construction Bank and its indirectly controlled subsidiary, Dolun Coal Chemicals. It entrusted the Railway Branch of the Construction Bank to act as the lending agent and provided Dolen Coal Chemical with entrusted loans totaling 1.1 billion yuan. The loan interest rate is a fixed rate, namely 4.35% per annum. Xilinhot Mining, which belongs to the same sector as Dolun Coal Chemical, also obtained a entrusted loan of 100 million yuan in the same manner. It is worth noting that Duren Coal Chemical is the most important project within Datang Power’s coal chemical sector; it operates what is considered the world’s first large-scale industrial application of coal-to-olefins technology. The reporter noted that this entrusted loan had already been agreed upon as early as July 1, when the decision to divest the coal chemical business unit was announced. According to the plan outlined in Datang Power’s announcement, 100% of the shares in Datang Nenghua Company, 100% of the shares in Datang Xilinhot Lignite Company, 100% of the shares in Datang Xilinhot Power Generation Co., Ltd., 60% of the shares in Datang Xilinhot Mining Company, as well as the preliminary projects related to Datang Keshiketeng Power Generation, will all be transferred at a price of 1 yuan to Zhongxin Nenghua, which was established in April this year. According to the valuation report of the assets to be divested, the assessed value of the aforementioned assets is -8.336 billion yuan. Among them, Datang Energy Chemicals, which has the largest scale, had a book value of net assets of 7.735 billion yuan; its assessed value was -6.945 billion yuan. The amount of impairment was nearly 14.679 billion yuan, resulting in an impairment rate of 189.79%. According to annual reports over the years, the coal chemical sector incurred a loss of 4.3 billion yuan in 2015, with cumulative losses of 11.56 billion yuan over the past three years. Furthermore, by the end of 2015, this sector had total liabilities of 65.3 billion yuan, resulting in a debt-to-asset ratio of over 95%. Under the terms of the agreement, during the transition period, Datang Power will continue to be responsible for operation and management, and it will also bear the associated profits and losses. To sustain its operations, Datang Power has to continue to provide financial support through entrusted loans. The dilemma of associated guarantees: The reporter noted that in the assessment report, the evaluation agency stated that due to consecutive losses since 2013, the company’s management was unable to reasonably predict the company’s future profitability based on its historical operational data and the internal and external business environment, and that the risks associated with future earnings could not be properly quantified. Obviously, this is also why Datang Power is eager to get rid of this heavy burden. In its announcement regarding the divestiture of assets, Datang Power Generation stated that in recent years its coal chemical business unit has continued to incur losses; to date, these substantial losses associated with the assets being sold have persisted, severely impacting the company’s overall performance. The complete transfer of the coal chemical business will put an end to the negative impact of losses in this business segment on the company’s performance. According to Datang Power Generation’s estimates, after the overall transfer, its long-term equity investment losses will amount to approximately 8.043 billion yuan ； Assets will decrease by approximately 78.2 billion yuan, while liabilities will fall by about 69.7 billion yuan, resulting in a reduction of the debt-to-asset ratio by around 3%. It is estimated that the parent company’s undistributed profits will be negative in 2016, which will affect the company’s ability to distribute dividends to shareholders for that period. It is worth noting that although it is easy to implement a stop-loss order, Datang Power had to pay a high price for it. Under the transaction plan, part of the principal amount of the entrusted loans will be exempted on the settlement date; the specific amount of exemption will be 8.336 billion yuan plus the absolute value of the operating losses during the transition period, with the total amount expected to not exceed 10 billion yuan. “Based on this transaction, the expected loss on the entrusted loan limit exemption is approximately 10 billion yuan. ”Datang Power Generation stated clearly in its announcement. This also means that, starting from the benchmark date of March 31, for each day the delivery date is delayed, Datang Power Generation will incur corresponding losses or gains. This transaction requires approval from the shareholders’ meeting, and there is some uncertainty regarding whether such approval will be obtained and when it will be granted. Furthermore, according to the announcement, by December 31, 2016, Sino-Singapore Energy Chemicals will relieve Datang Power of its liability to provide a loan guarantee for the transferred assets, either by replacing the guarantee or through any other means. With the total principal amount of the guaranteed loans amounting to 18.514 billion yuan, and Sino-Singapore New Energy’s registered capital being only 1 billion yuan, whether financial institutions will be willing to cooperate has become a focus of concern.
The Songliao Commission completed the inspection of the soil and water conservation facilities for the Inner Mongolia Datang International Keqi Project, which involves the production of 12 million cubic meters of coal-based natural gas per day (Phases I and II). Author/Source: Date: 2016-07-18 Clicks: 15 On July 12, the Songliao Commission held an inspection meeting regarding the soil and water conservation facilities for this project in Chifeng City, Inner Mongolia Autonomous Region. The acceptance team and the representatives present reviewed the technical documents, and listened to reports from the project-related units on the self-inspection of soil and water conservation facilities, soil and water conservation monitoring, supervision work, and technical evaluations, as well as supplementary explanations regarding the preparation of the soil and water conservation plan. The acceptance team believes that during the implementation of this project, the requirements outlined in the soil and water conservation plan and the relevant approval documents were generally met; the tasks related to preventing and controlling soil erosion were largely completed. The indicators for soil erosion control met the targets set out in the soil and water conservation plan, and the project meets the conditions for the acceptance of its soil and water conservation facilities. Therefore, the team agrees that the soil and water conservation facilities of this project should be approved. The Inner Mongolia Datang International Keqi Project for the production of 12 million cubic meters per day of coal-based natural gas is located in Kesiketeng Banner, Chifeng City, Inner Mongolia Autonomous Region. The project is being built in three phases. Construction of Phase 1 began in August 2009 and was completed in July 2012 ； Construction of Phase 2 began in April 2012 and was completed in March 2015. Representatives from the Water Resources Department of Inner Mongolia Autonomous Region, the Water Affairs Bureau of Chifeng City, the Water Affairs Bureau of Keshiketeng Banner, as well as those from the agencies responsible for plan formulation, supervision, monitoring, and evaluation attended the meeting.
Latest Developments on Environmental Protection Issues at Datang Dolun Coal Chemical Plant. Author/Source: Date: 2016-07-26. Clicks: 6. On April 4, 2016, a leakage incident occurred in the evaporation pond structure at Datang Dolun Coal Chemical Plant. The company activated its emergency plan, and by 5 a.m. on April 5, the leakage had been largely brought under control with no casualties. Following numerous discussions and consultations between the Xilingol League Administration and Duolun County, as well as the officials of China Datang Group, it was decided that Duolun County would take the lead, with the support of the enterprises involved, to carry out pilot relocation and resettlement projects for the surrounding villages under a coordinated urban-rural development approach. This relocation involves 2 towns, 3 administrative villages, and 11 village groups, covering 946 households with 2,223 people; the relocation is expected to be completed by the end of August. At the same time, the company was ordered to suspend production and carry out immediate rectifications; it could resume operations only after the rectifications had been approved by the environmental protection authorities. As of May 18, all units, including the boilers in the self-owned power plants, were shut down. The Environmental Protection Department of the autonomous region and the Environmental Protection Bureau of Xilingol League held discussions regarding the environmental issues at the Dolun Coal Chemical Plant on July 1 and June 30 respectively. On June 13, the Xilingol League Administrative Office held a discussion with Duolun County ** regarding the issues arising from the leakage in the evaporation pond structure at the Datang Duolun coal chemical plant. On June 14, Duolun County organized a meeting on environmental protection and work safety across the county, deciding to launch a three-month campaign aimed at addressing potential issues related to environmental protection and work safety starting from June.
“”The relocation is expected to be completed by the end of August. “That’s too fast if it’s this year. Where will it be moved to?” ”.