November 8, 2007 -- A memorandum of understanding to acquire a coking coal mine in Inner Mongolia was signed by Global Emerging Market Group and Tomorrow International Holdings Limited on October 17, with a formal agreement to be signed by December. By this agreement, Global Emerging Market Group, Tomorrow International Holdings Limited and Mengxi High-tech Group will work together to develop a coking coal mine in Inner Mongolia.

"In fact, this project includes two deals. The first one is to invest in the coal industry of Inner Mongolia with Mengxi High-tech Group to build a joint venture. All agreements on this were signed on August 22," Jonathan S. P. Yeap, Chairman and CEO for Joy Harvest Investment Limited (a subsidiary of Global Emerging Markets) told Emerging China, "The second is to list the joint venture in Hong Kong Exchanges with the help of Tomorrow International Holdings Limited."

As a result, Tomorrow International Holdings Limited will indirectly acquire rights to receive 55.3 percent of the coal mine's profits. Joy Harvest Investment Limited, the subsidiary of GEM will own 49 percent of the reserves through the joint venture with Mengxi High-tech Group and rights to receive 70 percent of the operations profits.

"There are profuse coal resources in Inner Mongolia while only ten percent are coking coal mines, and most of them distribute in the Wuhai and Ordos prairies. We only focus on the coking coal mines which can be used in metal smelting produce," said Yeap. "We hope to work with a strong and experienced partner in mainland China. Mengxi High-tech Group definitely is the best partner in Inner Mongolia."

With the policy of western development in China, investments in coal industry inland China have grown immensely.

"Shaanxi's coal resources are developed to a high degree. But the west of Inner Mongolia has the richest reserves of coal, which is expected to favor the region in the future," Xiaopei Guo, Researcher of Transportation Institution, National Development and Reform Commission, said in a statement.

"With Daqin Railway starting to construction in the near future, railway line will reach western coalfield in the hinterland of Inner Mongolia. The coal network will be further improved."