NextBT Holds Coal Mine Shares with Korea Coal Corporation..."Rising Coal Prices Highlight Mining Value"

[Asia Economy Reporter Hyungsoo Park] NextBT, a health functional food specialist company, announced on the 6th that it invested in 2011 and currently holds shares in the ‘Hutgorshanaga Bituminous Coal Mine,’ the second largest coal reserve in Mongolia.

In 2011, Korea Coal Corporation established a joint venture, Hanmong Energy Development Co., Ltd., and acquired 51% of the shares in the ‘Hutgorshanaga Bituminous Coal Mine’ located in the Kharaaltangbak region of Mongolia (with the Mongolian side holding 49%). NextBT acquired 20.97% of the shares in Hanmong Energy Development Co., Ltd. for business diversification purposes, securing an 11% stake in the entire mine when considering the remaining Mongolian shares. The total investment amount was 32.4 billion KRW, with Korea Coal Corporation investing 27.89 billion KRW, NextBT 3.71 billion KRW, and others 800 million KRW in the coal mine acquisition project.

According to Korea Coal Corporation’s investigation, Hanmong Energy Development, which holds 51% of the shares, has estimated reserves of 408.2 million tons of thermal coal used for power generation and 135.3 million tons of coking coal used for steelmaking at the ‘Hutgorshanaga Bituminous Coal Mine.’ As of September, the international price of thermal coal was $143.8 per ton, and coking coal for steelmaking was trading at $409.6 per ton, making the total reserve value approximately 137 trillion KRW. Due to the recent surge in raw material prices, China and India are experiencing coal shortages, pushing coal prices to a 13-year high.

A NextBT official explained, "The profitability based on coal prices and carbon neutrality issues in major advanced countries have prevented attention," adding, "Recently, the power shortages in China and India combined with the surge in coal prices seem to be highlighting the value of the mine shares."

He continued, "I understand that various mining plans, including linkage with steel mills, are currently being reviewed from multiple angles under the leadership of Korea Coal Corporation."

This content was produced with the assistance of AI translation services.