Shanxi Coking Coal Group teams up with TISCO

May 31 MetalBiz--The Shanxi Coal-Steel Energy Development Company recently began operation in Taiyuan, capital city of northern China's Shanxi province, a senior official with the Shanxi Coking Coal Group confirmed on May 30.

The move is believed to be a significant measure for the province, which is located on China's major coal belt, to cope with the global economic downturn through deepening cooperation between coal and steel industries.

According to Bai Peizhong, chairman of the Shanxi Coking Coal Group, the new company has a registered capital of 500mln yuan ($73.3mln), with the coking coal supplier taking 60% of the stake and TISCO Group holding the remaining 40%.

The new energy company will engage in coal mining, dressing and marketing. It will ensure coal supplies for TISCO and share profits from coal mining with the steelmaker, Bai said.

As China's largest coking firm, the Shanxi Coking Coal Group turns out 10% of the country's total product and supplies more than 20% of such materials needed by 18 big steelmakers nationwide.

TISCO is a world leading stainless steel manufacturer in terms of production capacity and technologies.

Industry observers said the establishment of the new company would be conducive to sharpening competitive edge of both coal and steel producers.