Others News
- Yanzhou plans to double coal output
Date: 5-Nov-2007 Sources: (Shenzhen Daily)
YANZHOU Coal Mining Co., China's third-largest coal producer by market value, plans to double its annual output to roughly 70 million tons by around 2012, with aggressive expansion offsetting lower production at its old mines.
The company was investing 2-3 billion yuan (US$268 million-US$402 million) to develop new mines as part of the expansion, including a project with Thailand's C.P. Group in Shaanxi Province, an official from the Hong Kong and Shanghai-listed firm said Friday.
But Yanzhou's 2007 coal exports were likely to reach just 2 million tons, falling short of an initial target of 3 million tons, said investment relations officer Jin Qingbin.
China, the world's top coal producer and consumer, emerged as a net importer of the commodity for the first time in January and remained so in each month during the first half of the year, helping to push up global prices to record highs.
Asked about future exports, Jin said: 'If the prices are good, we will increase our exports next year. Otherwise we may reduce them further from the current level.'
He declined to say at what price the company would be willing to sell more, including spot cargoes, but said domestic sales were more attractive than exports at US$80 a ton, free-on-board, due to transport costs of about US$10 per ton.
The company's exports totaled 1.5 million tons for the first nine months, including spot sales, Jin said.
Yanzhou planned to keep output at its six mines in Shandong Province at around 34 million to 35 million tons, lower than its historic maximum output of 42 million tons, amid stricter safety regulations imposed by the government
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