Securities Times reported that Huadian Power International Corporation wholly owned subsidiary, Shanxi Maohua Energy Investment, purchased three coal miners in Shanxi province for a total of CNY 1.58 billion on December 9.

The three target miners are Shanxi Jinneng Bailu Coal Industry, Shanxi Shouzhou Pinglu Xijiazhai Coal Mine and Shanxi Shouzhou Yibanling Coal Industry. The assets purchased include the exploration rights of the three miners and their employees.

After the purchase is completed, Maohua Investment will integrate the three miners into one coal mine with annual capacity of 1.2 million tonnes. After the integration, Xijiazhai Coal Mine will remain while the other two will be written off. At present, Bailu Coal has reserves of 200 million tonnes while Yibanling and Xijiazhai have reserves of 50 million tons and 81.22 million tonnes respectively.

Huadian coal mining capacity in Shuozhou will increase to 4.2 million tonnes with the completion of the aforesaid purchase. The capacity increase will help to promote coal self-sufficiency for Huadian power generation business.

(Sourced from Securities Times)