It is reported that Guizhou Panjiang Refined Coal Co will buy all of its parent's mining assets for CNY 7 billion which will boost profit fivefold.
Liupanshui, Guizhou province based company in a statement to the Shanghai stock exchange said that Panjiang Refined Coal will sell as many as CNY 318 million denominated shares to parent Panjiang Coal Power Corp to pay for four mines and other assets. It said that China's coking coal prices have doubled this year as the government closed small mines and demand from steelmakers rose. Panjiang Refined Coal increased prices for its products by 25% this month from June.
The statement said the assets would generate a profit of at least CNY 555.6 million in 2008 and CNY 747.7 million in 2009. Panjiang Refined Coal's profit rose 19% to CNY 96.6 million in 2007.
