December 03, 2008

China Datang Power to invest CNY 3.4 billion in coal mine

It is reported that China's Datang Power would invest up to CNY 3.4 billion to buy a 51% stake in a venture that will develop a large coal mine in Inner Mongolia.

Datang, without specifying that when the project might start production, said that the coal project in the Chinese region of Inner Mongolia, which still needs government approval, will produce 60 million tonnes of coal a year.

Datang Power also said it would invest CNY 2.9 billion and CNY 3.3 billion in two projects to turn coal into gas in Inner Mongolia and northern China's Liaoning province.

It also said that its net profit in 2007 rose by 17% YoY to CNY 3.41 billion due to increased power generation and higher power prices as revenues climbed up by 32% YoY to CNY 32.83 billion.