Xinhua quoted a senior official with the Shanxi Coking Coal Group confirmed that the Shanxi Coal Steel Energy Development Company began operation recently in this capital city of north China's Shanxi Province.
The move is believed to be a significant measure for the province, which is located on China's major coal belt, to cope with the global economic downturn through deepening cooperation between coal and steel industries.
Mr Bai Peizhong chairman of the Shanxi Coking Coal Group said that the new company has a registered capital of CNY 500 million with the coking coal supplier taking 60% of the stake and Taigang Group holding the remaining 40%. He said that the new energy company will engage in coal mining, dressing and marketing. It will ensure coal supplies for Taigang Group and share profits from coal mining with the steel maker.
As China's largest coking firm, the Shanxi Coking Coal Group turns out 10% of the country's total product and supplies more than 20% of such materials needed by 18 big steel makers nationwide.
