Hanlong Group#Allegations of corruption
{{Short description|Defunct Chinese conglomerate formerly active in mining and energy}}
Hanlong Group (汉龙集团) was a Chinese business conglomerate based in Sichuan Province with past holdings in solar energy, communications, chemicals, and mineral exploration. It became internationally known for its investments in Africa and its dramatic collapse following a major corruption scandal.
Hanlong’s publicly listed subsidiary was Sichuan Hongda Co., Ltd. (四川宏达股份有限公司; {{SSE|600331}}), which remains listed on the Shanghai Stock Exchange.{{cite news|last=Garnaut|first=John|title=Chinese maze holds Hanlong key|url=http://www.smh.com.au/business/chinese-maze-holds-hanlong-key-20110914-1k9oa.html|newspaper=Sydney Morning Herald|date=September 15, 2011}}
International Projects
In Tanzania, Hongda signed a US$3 billion deal in 2011 for coal and iron mining, marking one of the largest Chinese investments in East Africa at the time.{{cite news|last=Ng'wanakilala|first=Fumbuka|title=China co signs $3 bln Tanzania coal, iron deal|url=https://www.reuters.com/article/tanzania-china-mining-idUSL5E7KM1HU20110922|newspaper=Reuters|date=September 22, 2011}} The investment included plans to develop a 600MW coal-fired power plant at Mchuchuma and Katewaka via a joint venture called Tanzania China International Mineral Resources (TCIMR).{{cite news|last=Abduel|first=Elinaza|title=Plans to Generate Power From Coal in Full Gear|newspaper=Tanzania Daily News|date=July 17, 2012|url=https://allafrica.com/stories/201207170195.html}}
In Cameroon and the Republic of Congo, Hanlong led negotiations with the Cameroonian government on the Mining Convention for the Mbalam-Nabeba Iron Ore Project. The deal involved Hanlong’s attempted takeover of Australia's Sundance Resources to gain control of the transborder project.{{cite news |author=Ker |first=Peter |date=April 9, 2013 |title=Sundance slumps after Hanlong bid fails |url=http://www.smh.com.au/business/mining-and-resources/sundance-slumps-after-hanlong-bid-fails-20130409-2hhwp.html |publisher=The Sydney Morning Herald}} However, the acquisition fell through in 2013 after Hanlong failed to fulfill financing obligations.
Downfall and Dissolution
In 2014, Hanlong's chairman Liu Han was charged with murder and running a mafia-style criminal enterprise. His organization was said to have operated with the protection of former Chinese Politburo Standing Committee member Zhou Yongkang.{{cite web |date=March 31, 2014 |title=Chinese 'mafia-style' gang goes on trial |url=https://www.bbc.co.uk/news/world-asia-china-26815027 |work=BBC News}}{{cite web |last=Hornby |first=Lucy |date=February 20, 2014 |title=Chinese mining tycoon faces Mafia charges |url=http://www.ft.com/cms/s/0/5ced1ae8-9a15-11e3-8232-00144feab7de.html#axzz2xYA8VcX7 |work=Financial Times}} Liu Han was sentenced to death and executed in February 2015.{{cite web |date=May 23, 2014 |title=Chinese tycoon Liu Han sentenced to death for murder |url=https://www.bbc.co.uk/news/world-asia-china-27533558 |work=BBC News}}{{cite web |last=Blanchard |first=Ben |date=February 9, 2015 |title=Chinese billionaire mining tycoon Liu Han is executed over his links to a 'mafia-style' gang |url=http://www.smh.com.au/world/chinese-billionaire-mining-tycoon-liu-han-is-executed-over-his-links-to-a-mafiastyle-gang-20150209-139w2z.html |work=The Sydney Morning Herald}}
In a separate incident Calvin Zhu, vice president of Hanlong’s Australian subsidiary, was sentenced in 2013 to 15 months in prison for insider trading related to the Sundance deal.{{Cite web |last=Murray |first=Lisa |date=February 20, 2015 |title=Epic tale of executed Hanlong founder Liu Han and his mysterious fall from grace |url=https://www.afr.com/world/asia/epic-tale-of-executed-hanlong-founder-liu-han-and-his-mysterious-fall-from-grace-20150213-13eesk |access-date=February 11, 2023 |website=Australian Financial Review |language=en}}{{Cite news |last=Blanchard |first=Ben |last2=Wong |first2=Fayen |date=February 20, 2014 |title=China charges former mining magnate with murder, gun-running |url=https://www.reuters.com/article/china-crime-idINDEEA1J07620140220 |access-date=February 25, 2023 |work=Reuters |language=en}}
Following these events, Hanlong Group was effectively dissolved, with most of its projects discontinued or transferred.
References
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External links
- [https://web.archive.org/web/20120428081540/http://www.hanlonggroup.com/index.php Hanlong Group homepage (archived)]
{{Coal companies of China}}
Category:Companies based in Sichuan