‘Naco Fuel’ JSC (MSE: NKT) is pleased to announce that it has obtained a $500,000 convertible loan from ‘2-Pak Resources Investments SARL’, an affiliate of ‘Firebird Management’ LLC. The proceeds of the loan will be used for working capital purposes and to restore Naco’s coal enrichment plant located in Darkhan province, Mongolia.
The plant is designed to enrich thermal coal from ‘Sharyn Gol’ JSC (MSE: SHG) into carbon rich char and subsequently into smokeless briquettes. ‘Naco Fuel’ JSC plant is strategically situated to provide char which can be used as a partial coke substitute to industrial customers in Darkhan and to ship smokeless, environmentally friendly briquettes by rail to customers in Ulaanbaatar.
The plant is currently on care-and-maintenance as a result of operational problems. Following the resignation of the original CEO of the company, the Board of Directors appointed a new executive team to lead the restoration of the existing plant and the future expansion.
Mr. Bayarbat, the newly appointed CEO, served as the CFO of the company and has in-depth knowledge of the past operations of the company and the market conditions for the smokeless briquettes in Mongolia. The plant was designed to have a total annual capacity of 100,000 tons of char production.
The company plans to restore the plant to full capacity and is reviewing the potential to increase capacity to 500,000 tons per annum to meet demand. Furthermore, coal tar and coal gas, by-products of the coal enrichment process, will add considerable value to the company. Affiliates of ‘Firebird Management’ LLC now control 60.7% of the shares of ‘Naco Fuel’ JSC.
The plant is designed to enrich thermal coal from ‘Sharyn Gol’ JSC (MSE: SHG) into carbon rich char and subsequently into smokeless briquettes. ‘Naco Fuel’ JSC plant is strategically situated to provide char which can be used as a partial coke substitute to industrial customers in Darkhan and to ship smokeless, environmentally friendly briquettes by rail to customers in Ulaanbaatar.
The plant is currently on care-and-maintenance as a result of operational problems. Following the resignation of the original CEO of the company, the Board of Directors appointed a new executive team to lead the restoration of the existing plant and the future expansion.
Mr. Bayarbat, the newly appointed CEO, served as the CFO of the company and has in-depth knowledge of the past operations of the company and the market conditions for the smokeless briquettes in Mongolia. The plant was designed to have a total annual capacity of 100,000 tons of char production.
The company plans to restore the plant to full capacity and is reviewing the potential to increase capacity to 500,000 tons per annum to meet demand. Furthermore, coal tar and coal gas, by-products of the coal enrichment process, will add considerable value to the company. Affiliates of ‘Firebird Management’ LLC now control 60.7% of the shares of ‘Naco Fuel’ JSC.
For more information, please contact B. Purevbaatar at purevbaatar@cbm.mn.
ABOUT NACO JSC (MSE:NKT)
Address: Darkhan-Uul aimag, Darkhan soum, 15th bag, Industrial district
CEO: B.Bayarbat
Phone: 70379006
E-mail: nakotulsh@yahoo.com
Website: www.naco.mn
Established date: 2007-00-00
Listed date: 2008-06-24
Stock type: Common
Business Description: Manufacturing
MONGOLIAN STOCK EXCHANGE
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