Huadian Power to acquire stake in Ningxia Yinxing Coal
Wednesday, 23 Sep 2009
Interfax-China reported that Huadian Power International Corp Ltd will acquire a 45% stake in Ningxia Yinxing Coal Co Ltd for CNY 600 million.
According to the report, the deal will help HPI expand into the upstream coal business and increase its ratio of self-supplied coal.
Ningxia Power Group will retain the remaining 55% stake in the coal company.
Founded in March 2008, Yinxing Coal owns two coalmines:
1. Yinxing No 1 has exploitable coal reserves of 441.90 million tonnes and a designed annual production capacity of 4 million tonnes
2. Yinxing No 2 has exploitable coal reserves of 135.80 million tonnes and a designed annual production capacity of 1.8 million tons. However both of Yinxing Coal's coalmines are in the process of applying for exploration licenses from the government.
The company said Yinxing Coal will be an important source of coal for HPI's thermal power plants in Ningxia. However, with the growing number of railway lines scheduled to start operating in the following few years, the company coal output could be transported to other parts of China particularly the northeast to supply HPI's other thermal power plants.
