Beijing based largest Chinese Aluminum Corporation of China announced that it has signed an agreement with Jiexiu, Shanxi based Jiexiu Luxin Coal Gasification Corporation and Shanxi Aluminum Plant, subsidiary of Chinalco for investment in a new coal mining JV called Shanxi Jiexiu Xinyugou Coal Corporation based in the northern Chinese province of Shanxi.

Accordingly, Chinalco plans to invest CNY 537 million for 34% stake in the JV. Its subsidiary Shanxi aluminum plant will invest CNY 253 million for a stake of around 16%. Jiexiu Luxin Coal Gasification Company will hold the remaining shares.

The new joint venture coal group is expected to have 0.3 billion tonne of coking coal resources with a production life of 75 years.