China Shenhua to double output in 5 years

Sep. 2, 2009 (China Knowledge) - China Shenhua Energy Co Ltd<601088><1088>, the world's top coal producer by market value, expects to invest RMB 270 billion to double its output capacity over the next five years, said chairman Zhang Xiwu at a press conference yesterday.

Around 30% to 50% of the investment will come from its capital expenditure, while the remaining will be from bank loans, according to Zhang.

Acquiring assets from its parent group will be an important strategy in the listed company's expansion moves. It is estimated that the Chinese coal producer's annual output capacity will hit 400 million tons in 2013 based on the company's target of 190 million tons this year.

In addition, the company is looking for acquisition opportunities of coal mines in Mongolia, Indonesia and Australia, etc.

China Shenhua realized a net profit of RMB 16.92 billion in the first half of this year, representing a robust year-on-year increase of 14%, with revenue rising 16% to RMB 57.08 billion.