Chinese top coal producer China Shenhua Energy Co Ltd announced that it lifted the value ceiling of coal deals with China Datang Corp for 2008, 2009 and 2010. The value ceiling for 2008 rose 25%. That for 2009 hiked 173% to CNY 10.802 billion and that for 2010 surged 160% to CNY 11.83 billion.

The move signifies that Shenhua Energy is fairly confident of future coal markups, and is expected to bring more economic return to the company. Mr Huang Qing Shenhua Energy Board Secretary said that it would possibly continue to adjust the ceiling of coal deals in the future.

The company has strived to expand its coal business. On August 15th 2008, it confirmed that it would get the right to prospect a state owned coalmine at New South Wales in Australia. It was reported to pay AUD 300 million for a five year prospecting license of the mine and would spend AUD 175 million building infrastructure facilities which were not confirmed yet.

In the first half of 2008, Shenhua Energy yielded commercial coal of 89.6 million tonnes mounting 17% YoY and including 14.7 million tonnes in June.

source : steelguru online news

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