Kinetic Development Group Limited (“Kinetic Development’ or the Group” was incorporated in Cayman Island in July 2010. Its shares were listed on the main board of Hong Kong Stock Exchange (Stock code #1277) in March 2012.
The Group is an integrated coal enterprise. Its activities cover the whole coal industry chain from coal production and through coal loading and transportation, all the ways to coal trading.
The Group’s vision is to become a leading integrated coal provider in China.
Coal Resources
Inner Mongolia - Dafanpu Coal Mine
Kinetic Development has been delicated to developing the Dafanpu Coal Mines since its establishment. The Dafanpu Coal Mines is an underground thermal coal mine located in Zhunge’er Banner, Ordos City, Inner Mongolia, China, occupying a concession area of approximately 9.6KM2.
As at 31 December 2021 the Dafanpu Coal Mine has coal resources of approximately 389.77 million tonnes, comprising 154.79 million tonnes of Measured Coal Resources and 216.34 million tonnes of Indicated Coal Resources and 18.64 million tonnes of Inferred Coal Resources. Estimated Coal Reserves are approximately 183.72 million tonnes, comprising 83.13 million of Proven Coal Reserves and 100.59 million tonnes of Probable Coal Reserves.
The Group has mining rights of the Dafanpu Coal Mines, and they can be renewable upon application with the relevant PRC authorities prior to their expiration in November 2039.
Ningxia – Weiyi & Yongan Coal Mines
In June 2022, the Group became the sole operator of Ningxia Yongan and Weiyi Coal Mines by acquiring 100% equity of Ningxia Sunshine Mining Co., Ltd. The Yongan and Weiyi Coal Mines are underground coal mines. The coal types are coking coal, 1/3 coking coal and fat coal. They are located in Wuzhong City, Ningxia, China, with mining areas of approximately 21.7 KM2 and 26.7 KM2, respectively.
As at 31 May 2022, the Yongan Coal Mine has coal resources of approximately 224.22 million tonnes, comprising 63.22 million tonnes of Indicated Coal Resources and 161.00 million tonnes of Inferred Coal Resources. Estimated Coal Reserves are approximately 33.20 million tonnes (Probable Coal Reserves). The Weiyi Coal Mine has coal resources of approximately 118.61 million tonnes, comprising 38.09 million tonnes of Indicated Coal Resources and 80.52 million tonnes of Inferred Coal Resources. Estimated Coal Reserves are approximately 15.02 million tonnes (Probable Coal Reserves).
According to the construction and production plan, it is expected that Yongan Coal Mine and Weiyi Coal Mine will be put into operation in the first half of 2025, with approved annual production capacities of 1.2 million tons and 900,000 tons respectively, and reach full production in 2027.
Coal production
The Group strikes high efficiency and safety in coal mining.
The Dafanpu Coal Mine currently adopts a comprehensive mechanized top-coal caving mining method which allows mining a full height of coal seams at one time, replaced the original top coal caving technology of mining coal seams layer by layer. It enables the Group’s mining efficiency leading in the industry. Attributing to the Dafanpu’s comprehensive mechanization in production, the optimized structure of the Group’s production workforce, the Group’s staff costs always maintain at a low level in the industry. Furthermore, a washing plant with 5 million tonnes annual capacity is constructed in the Dafanpu Coal Mines. The Group plans to build a coal washing plant at Ningxia Yongan Coal Mine Industrial Factory with an annual processing capacity of 2.4 million tonnes to support the operation of Yongan and Weiyi Coal Mines.
Besides, the Group’s owns 45% equity in Xiaojia station and its associated spur lines. Xiaojia Station is about 1200 metres north of the industrial square of the Dafanpu Coal Mines; the geographical area is advantageous and convenient. The average handling capacity for Xiaojia station is approximately 5,000 tonnes per hour. It enables the Group to transport the self-produced coal from the Dafanpu Coal Mine and coal procured from third parties to Qinhuangdao via Datong-Zhungeer Railway and Datong-Qinhuangdao Rail Line, satisfies the logistic demands for the Group’s continuous growth in the coal sales and trading business.
The Group has developed a coal trading centre in Qinhuangdao. Coal prices at Qinhuangdao port are higher than pithead coal prices of Inner-Mongolia. Through increasing the average selling price quoted at the Qinhuangdao port, the gross profit margin grows significantly. Furthermore, the Group directly participates in the coal trading business; keep abreast of trends in price fixing, marketing and transportations, technology, safety and management in order to strengthen profitability and efficiency, which consolidates the Groups leading position in the coal industry.
Honors & Awards
By leveraging its strong competitive edge，Kinetic Development is frequently recognized by the capital market and the industry.
Dafanpu Coal Mine was accredited “Class A Coal Mine”- the highest rating of Inner Mongolia Zhunge’er Energy Bureau for seven consecutive years.
Since 2014, Dafanpu Coal Mine has been awarded the title of “Super Safe and Efficient Mines in by China National Coal Association.
Dafanpu Coal Mine was officially approved as “Green mines” in Ministry of Natural Resources of the PRC.
