Global Coal Management PLC
16 May 2007
16 May 2007
Global Coal Management
('GCM' or 'the Company')
GCM to invest in China Coal & Energy Corporation
Global Coal Management plc ('GCM' or 'the Company') announces that it has agreed
in principle to invest US$5 million in cash for a 5% equity interest in China
Coal & Energy Corporation ('CCEC'), an unquoted BVI company operating in Beijing
established for the purpose of acquiring coking and thermal coal projects in
China. The investment is subject to a successful due diligence currently being
CCEC has entered into several conditional Heads of Agreements pursuant to which
it may, subject to funding, acquire or joint venture various thermal coal
projects primarily in Shanxi and Inner Mongolia, ranging from operating
integrated coal mining and coke processing facilities to coal development
projects with resources of several billion tonnes each.
GCM will evaluate a number of these projects with a view to entering into joint
ventures on a case-by-case basis. With the exception of the integrated coal
mining and coke processing facilities, the remaining coal properties are at
pre-feasibility and exploration stage but appear to be substantial coal
resources which could be suited to large scale mining.
As these projects will require significant technical assistance, GCM have agreed
to provide management services to CCEC directly and will be guiding its
technical management and development. Mr Steve Bywater, GCM's Chief Executive,
will join the Board of CCEC.
Legally binding documentation in relation to this arrangement is expected to be
signed in the coming weeks and on signatures a further announcement will be
'The proposed relationship with CCEC on these exciting projects in China
utilises the strong coal management expertise that exists within the Company and
continues our aim of becoming a global coal management company,' said Steve
Bywater, GCM's Chief Executive.
The Company remains committed to implementing the Phulbari Coal Project Scheme
of Development with the Government of Bangladesh and will advise the market on
any substantive developments as they become available.
For Further Information:
Global Coal Management:
Ph: +44 (0)207 290 1630
Ph: +44 (0)207 290 1630
Pelham Public Relations:
Ph : +44 (0)207 743 6672
Email : email@example.com
Ph: +44 (0)207 743 6375
Notes to editors:
About Global Coal Management plc:
Global Coal Management (formerly Asia Energy plc) is a London based company
quoted on the London Stock Exchange's Alternative Investment Market ('AIM').
The Company is strategically focused on coal and related investments across a
range of geographical locations including: South Africa, Bangladesh and recently
China with the aim of sourcing potential opportunities that offer near return
whilst mitigating risk through the development of a diverse portfolio of assets.
Primarily focused on the exploration and development of coal deposits the
Company also targets related infrastructure such as power plants and
telecommunications networks to build on related areas of the coal mining
industry and support local development.
The Company's primary activity is the development of the Phulbari Coal Project
in Northwest Bangladesh into a world class open pit mine, adhering to the
highest national and international environmental and social standards. The mine
will have a life of more than 30 years and at full capacity will produce 15
million tonnes a year of mostly export quality metallurgical and thermal coal.
Its objective is to start mining activity once it has Government of Bangladesh
approval for the Scheme of Development and Feasibility Study.
In December 2006, the company invested in GVM Metals Limited, an Australian
listed company, whose focus is to bring its South African coal properties to
production. The investment provides GCM with valuable access to the South
African coal industry and strengthens the Company's strategy aimed at building
up a diverse portfolio of assets. GVM metals has three projects: Holfontein
project, Limpopo project and the Baobab project, which will prove GCM with the
opportunity to assist in the development of both underground and open-cut coal
GCM also made a strategic investment in the Bangladesh telecommunications
market, acquiring 26.5% of Peoples Telecommunications and Information Services
For further information: www.gcmplc.com
China Coal & Energy Corporation
CCEC is a single purpose BVI entity established to create a China-focused Coal &
Green Energy company. By focusing on two regions earmarked by the government for
significant development in the next three to five years, it is intended that a
portfolio of properties at various stages of development will be acquired to
create a company that will generate early revenue with significant growth
This information is provided by RNS
The company news service from the London Stock Exchange