Others News
- Shenhua eyes purchase of Adaro Indonesia
Date: 7-Dec-2007 Sources: (Shenzhen Daily)
SHENHUA Energy Co., China's top coal producer, said Thursday it is considering taking over PT Adaro Indonesia, the country's No.2 producer of the fuel, as it pursues resources overseas to feed China's robust economy.
Wang Jinli, vice president of Hong Kong and Shanghai-listed Shenhua, also told reporters Shenhua Group's coal output was likely to rise to 270 million tons next year from 260 million tons this year. But he did not elaborate on the company's plans for Adaro.
His comments come more than a week after a Hong Kong newspaper said Shenhua, which raised US$8.9 billion in a domestic initial public offering in September, was considering a US$4 billion bid for control of Adaro.
Adaro, controlled by investors including Edwin Soeryadjaya and entrepreneur Sandiaga Uno, has mining operations in four deposits in Indonesia's South Kalimantan province with total reserves of about 3 billion tons of low-sulphur coal.
Asked about exports, Wang said they would reach 30 million tons this year and he expected a similar figure next year. It was not immediately clear if he was referring to the listed company's exports or the total for the group.
Shenhua Energy said in May it planned 2007 exports of about 24 million tons, in line with last year.
It aimed to produce 15 million tons more of coal a year, which would increase its annual output to 200 million tons by 2010 against 136 million in 2006, it has said.
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