Chinese steelmaker Shougang Group has agreed to invest in a subsidiary of Hebei Province-based Kailuan Energy Chemical Co. for development of Geihsen coal mine in Canada's British Columbia province, Kailuan Energy said Friday.
Under the agreement, Shougang International Trade and Engineering Co., a subsidiary of Shougang Group, will sink $31.71 million for a 25% stake in Kailuan Dehua Mining Co., a joint venture currently 51:49 owned by Kailuan Energy and Canadian Dehua International Mines Group Inc.
After Shougang's investment, Kailuan Dehua Mining Co. will be a joint venture owned by Kailuan Energy (51%), Shougang International Trade and Engineering (25%) and Dehua International Mines (24%).
With proven reserves of about 255 million mt of coking coal and fat coal, Geihsen coal mine has a design production capacity of 2 million mt/year of washed metallurgical coal and has been slated to come on stream in two years.
Another Chinese steelmaker, Hebei Iron and Steel Group, has also agreed to invest in a subsidiary of Kailuan Energy for developing coal resources north of Moyu (Chinese pinyin, literally meaning "black jade") River in Canada's British Columbia province.
Under the agreement, a joint venture by the name of Canadian Kailuan Jihua Mines Co. will be set up by Kailuan's Canada-based subsidiary Zhonghe Investment Co. (51%), Hebei Steel (25%) and Hehua International Mines (24%)
for the development of coal resources north of the Moyu River.
A total $10 million has been pooled for coal resources prospecting north of Moyu with a view to launching a 3 million mt/year coal mining project.
In first-half 2010, Kailuan Energy mined 4.089 million mt of crude coal,up 215,600 mt or 5.57% on year. Its washed coal output totaled 1.587 million mt in January-June, up 173,500 mt or 12.27% on year. The company also produced 2.534 million mt of coke, up 832,800 mt or 48.95% on year.
Under the agreement, Shougang International Trade and Engineering Co., a subsidiary of Shougang Group, will sink $31.71 million for a 25% stake in Kailuan Dehua Mining Co., a joint venture currently 51:49 owned by Kailuan Energy and Canadian Dehua International Mines Group Inc.
After Shougang's investment, Kailuan Dehua Mining Co. will be a joint venture owned by Kailuan Energy (51%), Shougang International Trade and Engineering (25%) and Dehua International Mines (24%).
With proven reserves of about 255 million mt of coking coal and fat coal, Geihsen coal mine has a design production capacity of 2 million mt/year of washed metallurgical coal and has been slated to come on stream in two years.
Another Chinese steelmaker, Hebei Iron and Steel Group, has also agreed to invest in a subsidiary of Kailuan Energy for developing coal resources north of Moyu (Chinese pinyin, literally meaning "black jade") River in Canada's British Columbia province.
Under the agreement, a joint venture by the name of Canadian Kailuan Jihua Mines Co. will be set up by Kailuan's Canada-based subsidiary Zhonghe Investment Co. (51%), Hebei Steel (25%) and Hehua International Mines (24%)
for the development of coal resources north of the Moyu River.
A total $10 million has been pooled for coal resources prospecting north of Moyu with a view to launching a 3 million mt/year coal mining project.
In first-half 2010, Kailuan Energy mined 4.089 million mt of crude coal,up 215,600 mt or 5.57% on year. Its washed coal output totaled 1.587 million mt in January-June, up 173,500 mt or 12.27% on year. The company also produced 2.534 million mt of coke, up 832,800 mt or 48.95% on year.
