CFT Strategy

Our long-term strategy will be achieved by CFT CBM assets where risks have been minimised so as to be acceptable to multinational risk management policies.

The organisation’s immediate business strategy is to gain access to the large operating coal mines in China and using its exploration expertise to secure major CBM assets and prove up reserves.

CFT Strategy

CFT Holdings is already in the process of identifying CBM reserves near towns in remote China locations with a view to generating electricity and gas for these towns, and has entered into a Cooperative Joint Venture Agreement (‘CJV’) with Heilongjiang Longmay Mining Holding Group Co., Ltd (‘Longmay’) one of China’s leading coal company’s for coal bed methane and coal mine methane extraction.

In December 2011, the CJV was approved and registered by regulatory departments of the Peoples Republic of China (‘PRC’) Sino joint venture. The CJV has a 45 year term.

The match up of CFT Holdings and Longmay is ideal – Longmay has the coal mines which have significant resources of coal and large reserves of coal bed mining with the coal beds/seams and CFT Holdings has the technology and methodology to extract the CBM.

Under the terms of the CJV, Longmay and CFT Holdings have established a Sino-foreign Cooperative Joint Venture Company – Heilongjiang Aolong Energy Co., Ltd – which is registered as a limited liability company under the People’s Republic of China Law.

CFT Holdings will maintain its interest in Heilongjiang Aolong Energy Co., Ltd through its 100% wholly owned Subsidiary CFT Heilongjiang (HK) Ltd.

All of the operations under the Cooperative Joint Venture Agreement will be run through Heilongjiang Aolong Energy Co., Ltd.

Under the terms of the CJV, CFT Holdings:

(a) earns 80% of gross profits from Heilongjiang Aolong Energy Co., Ltd for the term of the CJV;

(b) obtains Board and fiscal control making the major decisions; and

(c) is responsible for 100% of the project funding.

CFT Holdings and Longmay intend to commence the business of Heilongjiang Aolong Energy Co., Ltd in the first half of 2012. The company is committed to contributing to Heilongjiang Aolong Energy Co., Ltd its proprietary technology, technological expertise as well as its upstream and downstream expertise.

Longmay Coal Group Ltd, like many of the Chinese mining groups, have mine safety issues and are willing to incorporate techniques which will alleviate these issues. One of the immediate business strategies of Heilongjiang Aolong Energy Co., Ltd will be to assist in safe production at the Longmay coal mines and CFT Holdings will actively assist in incorporating these mine safety techniques as standard practice.