December 03, 2008

China Lu-an plans 35% output rise in 2008

Reuters reported that Major Chinese coal producer Lu-an Coalmine Group aims to expand output of the hydrocarbon by 35% in 2008 to feed the world's largest coal market and has short listed a group of global firms as potential investors to anchor its expansion at home and abroad.

Mr Ren Runhou general manager of Lu-an Coalmine Group told Reuters on the sidelines of a coal conference in Beijing that Lu-an, based in northern China's Shanxi Province plans to churn out 50 million tonnes of coal this year up from 37.18 million tonnes of coal in 2007. It aims to house annual capacity of 100 million tonnes by the end of 2015.

Mr Ren said without elaborating that Lu-an Coalmine Group wants to expand abroad but has shelved plans to float shares overseas for the time being because Beijing discouraged its listing abroad and delaying its ambition of joining larger listed rivals China Shenhua Energy Co.

He added that Lu-an is on track to start coal to liquids production in August through a project with an initial phase capacity of 160,000 tonnes per year. That will be expanded to 3 million tonnes by the end of 2010 and to 5.2 million tonnes by end 2015.

Lu-an aims to achieve 15 million tonnes of oil production a year from that project eventually.