After speaking with Sean I thought it would be good to clarify how things work in China. It's not like the US, where they put out numbers and you had better hit them or you are gone because if your not then the corruption button gets pushed and it is on the 5:00 news that evening. In China, they make new provisions with the Big Picture in mind, and if you have been working hard to expand mines as in LL's case they are not going to come and shut you down if you miss your target. He said the targets are geared towards smaller mines that have not and do not have any plans in place to expand and are a lot of times very small operations mining 70,000-100,000 tons and they have done in Hope that a company like LL would scoop up those mines and expand them and in effect make them safer and more productive.
Obviously LLEN is highly regarded as being a company that has expansion in mind and the Govt. is not going to cut them down while in the process of expanding mines and putting almost 50M into renovations and upgrades as stated in the last ER, UP ANOTHER 10M almost over last QTR. So while the Official Approvals are in place, we are not in any danger of being shut down and that is as per Sean and he scoffed at the possibilities of that happening.
This is from an article that broke this week and is consistent with what Sean had told me yesterday:
"Last year, China’s state council announced that it will shut down at least 2,000 out of approximately 10,000 to 12,000 small coal mines with capacity of up to 90,000 tonnes a year by the end of 2015. The government will focus the closures on mines with substandard coal and poor safety records
While the government aims to close smaller mines, last year, it approved construction of 101.3 million new coal capacity in 2013, up from 16.6 million tonnes approved in 2012. Most of this additional capacity will be developed in the Shaanxi and Inner Mongolia regions, reflecting China’s goal of consolidating output and shutting down smaller mines. Cost improvements arising from economies of scale would apply downward pressure as large suppliers’ expansions weed out inefficient and high-cost miners in the short to medium term".
If you would like to read the entire article it is under my new post from this morning..."China Coal Consolidation". GL LONGS
My pleasure, I too am Hoping for the best and if not for the NAZ racist pig bullies we would have been trading already. They are making us jump through rings of fire in our birthday suits with our balls dipped in gasoline. People here make fun of DL and others at the top but they are working hard to beat this beast and I am satisfied with their efforts. This board might get a lot better when we reopen and the weak whiners sell and run before LLEN doubles...ah...ah...ah GL mac
They r very reasonable, they want what's best for their people. Those gov. officials will give them the necessary documents because they have absolutely nothing to gain if LLEN close shop. It might take time to negotiate the bribing price but in the end they will have the necessary documents.