LLEN: Problems with respect to the recently acquired LaShu Mine?
The LaShu Coal Mine (see LLEN 10K for FY2013, page 19)
"The LaShu Coal Mine is located in L LiuQuHe Town, HeZhang County, Bijie Area, Guizhou Province, China. It is an underground coal mine and is accessible by public roads. The map below shows the location of the LaShu Coal Mine.
Prior to our acquisition of the majority controlling interest of the LaShu mine, the mine was wholly owned and operated by Union Energy. Effective November 18, 2012, we acquired a 95% controlling interest in the LaShu mine (including 95% interest in the corresponding resource mining permits and the mining rights to the LaShu mine) and assumed mining operations.
resource mining permit issued by the Guizhou Province Municipal Bureau of Land and Resource specifies the coordinates of the LaShu mine's mining area and the mine's designated annual production capacity. The resource mining permit for the LaShu mine estimates that the mine's production area is 1.571 square kilometers and the scale of production is 300,000 tons per year based on current mine operating conditions. The estimate useful life of this mine is 20 years."
To the following two pieces of info are of Interest:
- "we acquired ….95% interest in the corresponding resource mining permits and the mining rights to the LaShu mine
- mine's production area is 1.571 square kilometers
- The real name of the LuoZhou Coal Mine is: 赫章县六曲河镇拉苏煤矿
I think the necessary assumption is satisfied for the Following Reason.
- LLEN states that the mine's production area is 1.571 square kilometers
The mining area reported in LLEN 10k for FY 2013 (page 18) exactly match the mining area of the赫章县罗州煤矿 (according to the mine's mining license)
August 2013, the Mining Rights for the LaShu Coal Mine have been assigned to UNION ENERGY (贵州优能(集团)矿业股份有限公司)
According to the Govt Documents, the transferor was the LaShu Coal Mine (赫章县六曲河镇拉苏煤矿-（郭应全）, where（郭应全） is the name of the Legal representative).
People have time one month to oppose to this decision.
How is this possible? According to LLEN 10K for FY2013 (page 18), LLEN
acquired ….95% interest in the corresponding resource mining permits and the mining rights to the LaShu mine
Attachment: - Mining Rights Transfer Public Notice
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.