Huadian Power acquires 3 Shanxi coal firms

Huadian Power purchased three coal mining groups in Shanxi province for a total of US$237 million yuan. The purchase was made through Huadian Power’s wholly-owned subsidiary, Shanxi Maohua Energy Investment.

The three mining firms are Shanxi Jinneng Bailu Coal Industry, Shanxi Shouzhou Pinglu Xijiazhai Coal Mine and Shanxi Shouzhou Yibanling Coal Industry. The assets purchased include the exploration rights of the three miners and their employees.

Maohua Investment will integrate the three mining groups into one coal mine with annual capacity of 1.2 million tons. After the integration, Xijiazhai Coal Mine will remain while the other two will be written off. At present, Bailu Coal has reserves of 200 million tons while Yibanling and Xijiazhai have reserves of 50 million tons and 81.22 million tons, respectively.

Huadian’s coal mining capacity in Shuozhou will increase to 4.2 million tons with the completion of the aforesaid purchase.