PINGDINGSHAN, China, May 2, 2011 /PRNewswire-Asia/ -- SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq: SCOK) (the "Company" or "SinoCoking"), a vertically-integrated coal and coke processor, today announced that its planned joint-venture with the state-owned Henan Province Coal Seam Gas Development and Utilization Co., Ltd. ("Henan Coal Seam Gas") has received its business license. The business license, dated April 28, 2011, is issued by the State Administration of Industry and Commerce of Zhengzhou, the provincial capital of Henan Province, China.
The Company's interests in the joint-venture, which is named "Henan Hongyuan Coal Seam Gas Engineering Technology Co., Ltd." ("Hongyuan CSG"), are held by Henan Zhonghong Energy Investment Co., Ltd. ("Zhonghong Investment"), which was formed by the Company in December 2010 for such purpose. Under its business license, Hongyuan CSG's business parameters include: (1) research and development of and technical consulting in coal and coal bed methane ("CBM") extraction; (2) research and development in CBM-related engineering; (3) investment and management of coal, CBM and coke enterprises; and, (4) sales of mining facilities.
With the business license in place, the Company now intends to carry out and complete all previously announced coal mine acquisitions through Hongyuan CSG, as well as to pursue any other potential acquisitions until the provincial-wide consolidation drive expires at the end of the year. The Company also intends to operate its Hongchang Mine through Hongyuan CSG, and expects that operations there can officially resume full capacity sometime in the second half of fiscal 2012. Under this joint-venture framework, Henan Coal Seam Gas will assume management of and responsibility for all mining safety issues at Hongchang Mine as well as all other mines to be acquired by Hongyuan CSG.
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