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Coal Rich Shanxi Province to Merge 3 Coal Miners to Create Jinneng Holding Group

Coal News - Published on Thu, 08 Oct 2020

Image Source: Shanxi Province Jinneng Holding
Chinese government plans to create China’s second-largest coal mining conglomerate by merging at least some of the assets of at least five of the seven major coal mining companies in the northern province of Shanxi. The provincial government of Shanxi will amalgamate the 3 coal companies into a single entity called Jinneng Holding Group. The companies to be consolidated include Datong Coal Mine Group Co Ltd, Jinneng Group Co Ltd and Shanxi Jincheng Anthracite Mining Group Co Ltd, which had more than 1 trillion yuan (USD 147 billion) in combined assets as of June 30, according to a statement released by Datong on September 30. The consolidation of the trio would make the new company China’s second-largest coal mining company by output, as they produced a total of 316 million tonnes of the combustible black rock in 2019. The Taiyuan Coal Exchange Centre, China’s largest coal market, will also become part of the new entity.

The country’s top producer, China Energy Investment Corp Ltd, produced 510 million tons of coal last year.

The move, aimed at increasing efficiency in China’s fragmented coal industry, is part of Beijing’s drive to improve the operation of state-owned enterprises, which are still considered the backbone of the economy. The ultimate goal is to achieve one company in leadership, personnel, strategic planning, investment, marketing, supply chain and management

China laid out plans five years ago to consolidate the coal sector into several large companies by the end of 2020. Recent consolidations include the merger of Shandong Energy Group and Yankuang Group in July. Shanxi Coking Coal Group also restructured the Shanxi Coal Import and Export Group this year.

China’s top 10 coal miners produced 1.16 billion tonnes of coal in the first eight months of the year, accounting for 47.2 per cent of total output, according to the China National Coal Association.

Shanxi is one of China’s largest coal producing provinces, alongside Shaanxi and Inner Mongolia, both in the north. In the first half of the year, Shanxi was the biggest producing province with 26 per cent of the country’s total coal output, government data show.

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Posted By : Yogender Pancholi on Thu, 08 Oct 2020
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