On March 19, 2026, Shanxi Lu'an Environmental Energy Dev. Co., Ltd. won the coal exploration right in Sucun block, Xiangyuan County, Changzhi City, Shanxi Province for 8.222 billion yuan.

On January 26, 2026, the Department of Natural Resources of Shanxi Province issued a notice for the listing and transfer of the exploration right: the mining right is located in Xiangyuan County and Tunliu District of Changzhi City, with an area of 47.6467 square kilometers, a starting price of 10 million yuan, a bidding deposit of 200 million yuan, and a requirement that the net assets of the investors are not less than 3 billion yuan. The mining right started a limited time bidding at 10:00 on March 18th, with fierce competition. After nearly 28 hours of bidding, it ended at 13:51 on March 19th, 2026, and Lu'an Huaneng successfully won with the highest bid. Unlike other listed companies bidding for mines, the bidding company did not make any prior announcement.

Overlapping mining rights and clear surrounding mining conditions

This project area overlaps approximately 28.1686 square kilometers with the exploration of coalbed methane in the northern part of Xiadian in the Qinshui Basin of PetroChina, and approximately 10.7249 square kilometers with the coalbed methane mining area of Wuyang Well. Written consent from the oil and gas mining rights holder is required for the conversion of exploration to production. The above two mining rights belong to China National Petroleum Corporation. The Wuyang Well area has an annual production of 100 million cubic meters of coalbed methane and a mining area of 12.71 square kilometers. The exploration right is less than 2 kilometers away from the Yongzi wind shaft of the Zhangcun coal mine in Lu'an. The wind shaft covers an area of 7.84 hectares and has a geological reserve of 115.05 million tons. The industrial reserve of No. 3 coal is 95.798 million tons, and the designed recoverable reserve is 38.956 million tons. The geological structure is simple and the mining conditions are excellent. The project entered joint trial operation in June 2021 and passed completion acceptance in February 2022. Currently, nearly a thousand employees are working in this well every day.

Basic Information of Lu'an Environmental Energy Enterprise

Shanxi Lu'an Environmental Energy Development Co., Ltd. was established on July 19, 2001, located in Changzhi, Shanxi. Its chairman, Han Yuming, was listed on the Shanghai Stock Exchange in 2006, with the stock abbreviation Lu'an Environmental Energy and the code 601699.SH. The company's main business is coal mining, washing and processing, and environmental energy development, with coal production as its core business. The coalfield under its jurisdiction is located in the middle section of the eastern edge of the Qinshui coalfield, with a total area of about 1334 square kilometers, a total geological reserve of 9.815 billion tons, and a recoverable reserve of 5.665 billion tons. The main coal types are lean coal, lean coal, and lean coal, with a confirmed production capacity of 50 million tons of raw coal. Keywords: Lu'an Environmental Energy, Sucun Block, Coal Exploration Right

Company Capacity Layout and Development Potential

According to the 2024 annual report, Lu'an Huaneng has 18 production mines with an advanced production capacity of 49.7 million tons per year and an average single well scale of 3 million tons per year; The total production capacity of the under construction and planned mines is about 8.5 million tons per year, and there is room for continuous improvement in production capacity. Winning the high-quality exploration rights this time will further increase the company's resource reserves and provide guarantees for long-term development.Editor/Gong Ziwei