Leyshon Resources focusses on the potential of mining coal to satisfy Chinese


first_imgLeyshon Resources is of the view that with the escalating demand for all types of coal within China over the next ten years, high quality coal assets located close to infrastructure and within transport distance to market will become increasing valuable. Its broad strategy is to target and acquire high quality coal assets located in western China, southern Mongolia and Indonesia. As part of this strategy Leyshon has made applications for a large area of exploration licenses in the Gobi Altai region of southwest Mongolia. The licences totalling an area of 2,664 km2 which Leyshon’s geologists consider to be highly prospective for high quality coals including hard coking and semi-soft coking coals as well as high energy thermal coals.The licences lie between 35 to 100 km from a recently re-established Mongolia/China border crossing at Laoyemiao, giving direct access to the rapidly expanding major steel producing centres of northern China.Leyshon is also actively reviewing large-scale thermal coal projects in Western China and seaborne thermal coal projects in East Kalimantan, Indonesia.The Chinese Ministry of Railways is constructing dedicated coal freight lines with a design capacity of 800 Mt/y to haul coal from the west to the demand centres of southern China. China is also making major investments in Indonesian seaborne coal capacity.The company expects that the western Chinese Province of Xinjiang and Indonesia will be the two main sources of coal to meet China’s future demand increases.Leyshon has just completed its readmission to the Alternative Investment Market (AIM) of the London Stock Exchange. As part of its readmission to AIM, it has placed 30,435,130 new ordinary fully paid ordinary shares at A$0.23 and raised approximately A$7 million before costs.The shares have been placed with a number of high profile institutional investors who are supportive of the company’s business plans. The placees include IDG-Accel China Growth Fund II L.P. and its affiliated entity, as managed by IDG Capital Partners, which now becomes a major shareholder holding approximately 8% of the Company.IDG Capital Partners is a China-focused investment firm with over $2.5 billion capital under management. It is one of the earliest foreign investment funds to enter the Chinese market since 1992 and has successfully invested in the industry of consumer, services, TMT, education, healthcare, new energy and advanced manufacturing sectors.IDG Capital Partners invests in high quality companies with long-term growth potential. It shares its in-depth understanding of the China market with investee companies. In addition to providing funding, it works closely with management and industry leaders to achieve the growth objectives of its investee companies.Managing Director Paul Atherley commented: “We have been working closely with the IDG team in Beijing for some time now and welcome them on board as a major shareholder. IDG has an impressive track record of investment in China and we look forward to their support in implementing our business plans.”last_img

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