December 02, 2008

Shenhua announces USD 3.6 billion CAPEX for increasing coal output

Bloomberg reported that China Shenhua Energy Company would spend about CNY 27 billion (USD 3.6 billion) by the end of 2009 to expand its coal output.

Mr Chen Biting chairman of Shenhua Energy said the investment would come as Shenhua pursues a target of 200 million tonnes of annual production by the end of the decade. He added that the company aims to have power output capacity of 20,000MW by 2010.

Shenhua plans to sell as many as 1.8 billion shares in China by the end of 2007 to raise funds to expand mines, power production and its transport network as well as for domestic and overseas acquisitions.

Mr Chen said “Our share sale will be priced at a level that fully reflects the company’s real value. We would not promise too low a price for our share sale to attract investors.” He added that “I haven’t heard anything that would delay the share sale. Even if there are delays, our capital expenditure would not be affected.”