New coal JV advances Shanxi mine consolidation
Shanghai. March 1. INTERFAX-CHINA - Electric power producer GD Power Development Co. Ltd. and Shanxi Coal Transportation and Sales Group Co. Ltd. have set up a coal production joint venture to lead the consolidation of Shanxi Province coalmines, Shanxi Coal announced on March 1.
According to the announcement, GD Power holds 49 percent stake in the joint venture (JV), which was established in February, and will oversee the consolidation of 28 coalmines in Shanxi Province - 27 in Zuoyun County and one in Datong County.
Upon completion, the joint venture will have an expected annual production capacity of 8.7 million tons and a reserve of 1.03 billion tons of coal. Annual production capacity is expected to reach 10 million tons by 2011, the announcement said.
Yu Wei, an industry analyst with Kunyang Investment, told Interfax that the new JV will supply two GD Power thermal power plants located in nearby Datong City.