Lanhua Sci-Tech wins coal exploration rights auction

Shanxi Lanhua Sci-Tech Venture (SSE:600123) announced that it has won the auction for exploration rights to the Sitou Block coal mine in Yangcheng County, Shanxi Province. The winning bid was CNY 6.944 billion. The area covers 15.4903 square kilometers and is estimated to contain 21.67 million tonnes of coal resources. The company is yet to sign the "Confirmation Letter" with the Shanxi Provincial Department of Natural Resources, which is expected to be completed within five working days, followed by a 10-day public announcement period. Lanhua Sci-Tech plans to fund the acquisition through existing funds or self-raised capital, stating the move aligns with its expansion strategy and will bolster its coal resource reserves and market competitiveness. The exploration rights are valid for five years, and the company acknowledges potential risks associated with exploration, mine development, and future profitability, urging investors to exercise caution.