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  1. #1
    TonyStarks is offline Moderator
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    Chinese commit to Algerian coal mine

    ALGIERS, Algeria (UPI) -- Chinese coal producer Yankuang Group and its partners will develop a $1 billion coalmining prospect in the Sahara Desert.

    Yangzhou Coal Mining Co. Ltd. signed a letter of intent this week with Algeria`s Geoinvest Ltd. and Bahamas-based Global Environmental Energy Corp. to develop the Algerian prospect, which is estimated to hold more than 1 billion metric tons of coal.

    Shenzhen Environmental Energy Technology Co. Ltd. will manage the project.

    Production will be sold to Morocco and Spain, which currently buys its coal from Colombia, the United States and South Africa. Participants in the project believe that because of their proximity to Spain, they will have a price advantage over coal producers in nations where Spain currently buys its coal.

    The mine is 6 miles from a railroad and less than 100 miles from a major Algerian port.

  2. #2
    TonyStarks is offline Moderator
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    Im not familiar with how a situation like this would work. Does Algeria get money off the sale of the coal or does the Chinese company and its partners? Or is the article simply saying that the Chinese will develop facilities that will allow Algeria to extract the coal? Can anyone clarify.

  3. #3
    Mourad_A is offline Registered User
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    In cases like these....

    whoever owns the land usually grants an license (permission) to someone else, to extract the minerals for a certain amount of time.

    e.g. license to extract coal for 20 years. It usually excludes ownership of any other minerals e.g. if diamonds are found. When this happens a new agreement needs to be negotiated.....

    As the minerals are mined they are weighed e.g. one lorry load weighs x-amount, and then a percentage royalty is paid to the landowner on the weight.

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