Luan Environmental Energy wins the coal exploration rights for the Su Village block in Xiangyuan County, Shanxi Province, with a bid of 8.222 billion yuan.

Lu’an Huaneng announced on the evening of March 23 that the company participated in the public auction for the coal prospecting right of the Su Village block in Xiangyuan County, Shanxi Province, and won the coal prospecting right with a bid of RMB 8.222 billion. The exploration area for this coal prospecting right is 47.65 square kilometers, with coal resource reserves of 49.178 million tons (including potential resources of 7.5686 million tons).

Lu’an Huaneng said that the Su Village block in Xiangyuan County, Shanxi Province is adjacent to the location of the company’s headquarters, and is close to the current mining area of the Wuyang Coal Mine, giving it prominent location advantages. “In the future, after this block is converted into a mining right, it can rely on the existing production system of the Wuyang Coal Mine to carry out extended and continuous mining, and the resource endowment and mining conditions are excellent. This is high-quality follow-on resource that the company has focused on securing over the long term.” The company emphasized that the acquisition of this prospecting right is closely aligned with the direction of the company’s main responsibilities and core business development, and fits the company’s long-term resource strategy and layout. It will effectively increase the company’s coal resource reserves, further improve the structure of resource reserves, and continuously enhance the company’s core assurance capabilities and overall competitive advantages.

Lu’an Huaneng had previously disclosed a performance forecast, estimating that its net profit for 2025 would be RMB 1.080 billion to RMB 1.320 billion, which is expected to decrease by RMB 1.130 billion to RMB 1.370 billion compared with the same period of the previous year, representing a year-on-year decline of 46.12% to 55.92%. It is also expected that the company’s non-recurring profit for 2025 would be RMB 0.839 billion to RMB 1.079 billion, which is expected to decrease by RMB 1.305 billion to RMB 1.545 billion compared with the same period of the previous year, representing a year-on-year decline of 54.74% to 64.81%.

Lu’an Huaneng said at the time that in 2025, the main reason for the substantial year-on-year decline in the company’s net profit was: affected by the overall downcycle in coal market prices, the domestic market for commodity coal saw an intensification of a loose supply-and-demand pattern, and the company’s 2025 average composite selling price for commodity coal decreased significantly year on year. In addition, some of the company’s major production mines were constrained by factors such as complex geological structures, changes in coal seam occurrence conditions, and mine development and production coordination, and, combined with stricter external requirements for safety and environmental protection regulation, the company’s coal production and sales decreased year on year.

Edited by | Xu Heyang

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