HONG KONG Aug 17 China Coal Energy Co Ltd
has formed a joint venture, with registered
capital expected to gradually increase to 54 billion yuan ($8.5
billion) from 1 billion yuan, to build and operate a coal
transportation railway linking northwestern China with the rest
of the country.
The move is part of plans by China, the world's top coal
producer and consumer, to rapidly expand large coal mines and
power plants in its arid northern and western provinces.
The around 1,800-kilometre railroad will connect key coal
producing provinces including Inner Mongolia and Shaanxi with
the centre of China and will involve a total investment of about
154 billion yuan ($24.2 billion), the country's second largest
miner said in a filing with the Hong Kong bourse late on
China Coal said it would own 10 percent of the
Mengxi-Huazhong Railway Co, with China Railway Investment Corp
holding 20 percent and another 14 Chinese partners taking the
other 70 percent.
China intends to boost coal production in provinces
including Inner Mongolia, Shanxi, Shaanxi and Ningxia, with
output in those areas expected to reach 2.2 billion tonnes, or
56 percent of the country's forecast production of 3.9 billion
tonnes, by 2015.
Shares in China Coal had risen 1.4 percent as of 0214 GMT,
outperforming a 0.54 percent gain in the benchmark Hang Seng
For China Coal's statement, click: here
($1 = 6.3658 Chinese yuan)
(Reporting by Donny Kwok; Editing by Joseph Radford)