Asia Coal: Annual Report 2011/12
July 23, Asia Coal Limited (HK:835) --
BUSINESS REVIEW
During the year, the Group continued to engage in coal mining business and distribution of health and beauty products and services. But the logistic services business has been discontinued during the year.
In the coal mining segment, the Group continued to hold the mining rights to the Saikhan Ovoo coal deposit in the Bulgan province of Mongolia. The JORC compliant resources report prepared by independent technical advisers shows estimated resources for the Saikhan Ovoo coal deposit in excess of 190 million tonnes. The coal resources estimated (on air dry basis) based on the analytical work on 165 coal samples taken from 27 boreholes with a total of 5,222 metres drilled are as follows:
Independent Auditor's Report
Emphasis of Matters
We draw attention to note 19 to the consolidated financial statements. The Group owns two mining rights in Mongolia which may be revoked as a result of the enactment of the Mining Prohibition Law (the "MPL").
During the year, the Group continued to engage in coal mining business and distribution of health and beauty products and services. But the logistic services business has been discontinued during the year.
In the coal mining segment, the Group continued to hold the mining rights to the Saikhan Ovoo coal deposit in the Bulgan province of Mongolia. The JORC compliant resources report prepared by independent technical advisers shows estimated resources for the Saikhan Ovoo coal deposit in excess of 190 million tonnes. The coal resources estimated (on air dry basis) based on the analytical work on 165 coal samples taken from 27 boreholes with a total of 5,222 metres drilled are as follows:
Independent Auditor's Report
Emphasis of Matters
We draw attention to note 19 to the consolidated financial statements. The Group owns two mining rights in Mongolia which may be revoked as a result of the enactment of the Mining Prohibition Law (the "MPL").
According to the MPL, the affected license holders, including the Group, are to be compensated but the details of the compensation are not currently available. If the Group's mining rights are revoked due to the MPL and the compensation received by the Group is significantly less than the carrying amounts of these concessions, the Group would incur a significant impairment loss on the related exploration and evaluation assets. The ultimate outcome of this matter cannot presently be determined and no provision for an impairment, if any, that may result from the above matter has been made in the consolidated financial statements.
Deloitte Touche Tohmatsu
Deloitte Touche Tohmatsu
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