SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK), a coal and coke processor, announced on Tuesday that it has landed a deal with the local government of Pingdingshan. In the said deal, the local government agrees to provide SinoCoking with a wide gas distribution network, storage facility, and a 7.5 square miles piece of land that’s rich in exceptional coal deposits.
There is also a possibility of SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK) receiving financial support from the local government if the project performs well at the initial stages.
The deal with the local government of Pingdingshan will help SinoCoking’s coal-to-gas conversion project.
On Monday, SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK) stock reached a high of $8.05 at some point as it made progress. The stock closed at $5.40 for the day. The pact is believed to be behind the great strides registered by the stock, and it’s still expected to make steady rise in the coming weeks.
The move is in line with Chinese government increased efforts in reducing pollution as the country continues to steadily industrialize. There have been a lot of concerns both locally and by other international bodies on the rate at which industrialization in China is causing pollution. In fact, the mine fields, part of which has been allotted to SinoCoking Coal and Coke Chem Ind, Inc. (NASDAQ:SCOK), were closed down due to growing concerns over environmental degradation. The Chinese government only gave the nod due to SinoCoking’s technology of processing syngas without releasing worrying levels of carbon dioxide gas.
“We are proud to provide SinoCoking Coal and Coke Chemical Industries with the infrastructure and raw materials vital in implementing this great clean energy technology. The cost-effective production and distribution of vast quantities of clean-burning syngas, while safely sequestering harmful greenhouse gases deep underground, is an achievement that will have enormous health, environmental and economic benefits,”
said Mr. Wang Xichang, the Pingdingshan Government District Director supervising the syngas project.
This article has been written by Victor Ochieng.