Friday, July 3, 2009

China Shenhua To Double Production By 2014

China Shenhua Energy Co Ltd plans to double its annual coal production capacity by 2014 from this year's level, the China Securities Journal reported on Friday, quoting unnamed company sources.

The goal for 2014, set at 400 million tonnes, will account for 15 percent of China's total coal production capacity, the paper said.

Shenhua will need 100 billion yuan ($14.6 billion) to fund the expansion plan over the next five years. The company has sufficient cash flow to fund the project, the paper said.

It produced 186 million tonnes of coal in 2008, up 18 percent from a year earlier, the company's annual report said.

Its parent, Shenhua Group Corp, China's largest coal producer, also plans to double its production capacity from 80 million tonnes currently, excluding the listed arm's capacity, the paper said.

Source: Reuters

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