U.S. Coal Producers Signed LoI Coking Coal Mining Operation In Shanxi Province, China

U.S. coal producer company, America West Resources signs LoI for coking coal operation in Shanxi Province, China. Coal mines will be operated a coking coal mine owned by Jiexiu Shanxi Luxin Coal Gasification Company, a coal mining company in China. Company Luxin operates coal coking plant in Shanxi Province with annual production capacity of 600,000 metric tons. Coking coal plant built next to produce coke, also generates electricity using synthetic gas produced through gasification of coal.

The prospect of Shanxi Coking Coal Mining Company Jiexiu Coal Gasification Luxin

In 2007, Luxin income reached U.S. $ 129 million and EBITDA of U.S. $ 30 million. In 2008, the Company received an annual income of U.S. $ 140 million and EBITDA of U.S. $ 22 million. During the first six months of 2009, Luxin posted revenues of U.S. $ 60 million and EBITDA of U.S. $ 9 million. Reuter reported, the demand from steel makers for the metallurgical, or coking coal, is rebounding from the recession last year, especially in China. This article cites authority projects that consumption of industrial Asia will increase to eight billion tons of the six billion tons in the next 20 years.