Metals & Mining

  • CompanyCeladon Mining
  • Key MarketsChina
  • Industry SectorMetal & Mining
  • SegmentCoal
  • Time of InvestmentMarch 2011
  • Website

Celadon Mining Limited

Celadon Mining Limited (“Celadon”) is a China-focused coal mining and development company.
Celadon, through its Chinese subsidiaries, owns three coal mines and a substantial exploration area (39km2) in the eastern sector of the Qitaihe coal-bearing basin in Heilongjiang Province, northeast China. The total resource base of these concessions is estimated to be 260 million tonnes (according to Chinese classification). Based on previous and ongoing technical review work undertaken by international mining consultants, Origo estimates that a mineable resource in the region of 100 million tonnes could be achievable.
In 2010, Celadon produced a limited amount of coal from two of its mines which were in a trial mining and ramp-up phase. Its third mine is currently being upgraded and refurbished, and trial production is expected to commence in 2011. Celadon plans to expand production to over 1 million tonnes per annum within the next 3 years, to be funded by existing cash reserves and its operating cashflow.
Celadon’s exploration area and its two operating mines are located within the Boli area of the Qitaihe basin (one of China’s economically important coking coal areas), approximately 80 km east-northeast of the city of Qitaihe. The transport system around the Boli coal mining area is well developed, and includes access to a provincial highway (at 13km distance) and a regional rail network (at 40km distance). The majority of the coke from the Qitaihe coal basin is transported to steel producers across northeast China by railway. Coking coal is also transported to the Russian port of Suifenhe and exported to Japan and Korea.
In March 2011, Origo became the largest shareholder of Celadon excluding that of the founding shareholder and his affiliated entities. Other shareholders in Celadon include regional and international institutional investors.