L&L Energy, Inc. LLEN

Why it might take some time...

[chsharpei]

before we see LLEN -owned mines in IM. Lack of adequate coal rail systems from Mongolia to central China is a huge obstacle to profits for coal enterprises.

'Erdenes Tavan Tolgoi, the biggest state-owned coal company in Mongolia, said its two most senior foreign executives resigned as part of cost cuts at the cash strapped company....The departures throw into question the timing of Erdenes TT’s initial public offering, which was expected to raise as much as $3 billion when first planned three years ago. They follow the company revealing this month that it stopped deliveries to Aluminum Corp. (2600) of China Ltd., its main buyer, because it couldn’t afford to truck coal to China.'

https://www.bloomberg.com/news/2013-01-30/mongolia-s-biggest-coal-miner-loses-executives-in-cost-cutting.html

Perhaps we will see mines in Shanxi before IM. Thoughts?

Also, didn't Bar mention several months ago an investment in IM mines he'd made not doing at all well.

I would like to hear more from those in the know please. Bar?

Sharpei

[barsolid]

My buy is in Mongolia not Inner Mongolia and they are specifically not shipping the coal to China.  they are building a power plant (electricx) right next to the mine and are going to supply Electricity to Ulan Bator (mongolian capital).  But yes, rail lines are in short supply and many do not reach the Mongolian border.  Inner Mongolia is better but still there are major shortages.

[chsharpei]

Bar: Thank you for clearing that up. The following form Reuters Aug 2012 addresses new coal rail but not in detail...no date at which it is expected to be complete: https://www.reuters.com/article/2012/08/17/chinacoal-railway-idUSL4E8JH11L20120817 Sharpei