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Shandong to merge Shandong Energy Group & Yankuang Group

Coal News - Published on Tue, 14 Jul 2020

Image Source: Shandong Yankuang Coal
Two of Shandong province’s top state-owned coal mining firms, Shandong Energy Group and Yankuang Group, are to merge into a single group, as part of the province’s scheme to improve the efficiency of state-owned capital utilization. As the two groups’ major businesses are similar, the merger will optimize resource allocation and help improve their competitiveness. Yankuang, which produced 166 million tonnes of coal in 2019, has operations in Shandong and Shaanxi provinces and the Inner Mongolia region. Shandong Energy produced more than 100 million tonnes last year. Joint output of more than 260 million tonnes per year at the newly merged company would make it one of China's largest coal producers, accounting for around 7% of the country's total coal output.

Yankuang's Australian producing subsidiary Yancoal will also be part of the merger. Yancoal expects to produce 36 million tonnes on an attributable basis in 2020, up from 35.6 million tonnes last year, despite the prospect of Covid-19 suppressing demand over the rest of this year.

Shenhua Energy, the listed subsidiary of China's biggest state-controlled coal producer China Energy Investment, has set a production target of 268 million tonnes for this year. China produced a total of 3.75 billion tonnes of coal in 2019.

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Posted By : Yogender Pancholi on Tue, 14 Jul 2020
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