China Resources Power Holdings aims to increase its self-sufficiency in coal to more than 40 per cent by 2012 after reporting a better than expected 125.5 per cent jump in first-half profit.
The firm planned to invest up to 10 billion yuan (HK$11.35 billion) over the next four years to boost the capacity of newly acquired coal mines in Shanxi province, chief executive Wang Shuaiting said.
CR Power, through 58 per cent-owned Shanxi China Resources Liansheng Energy Investment, just bought 17 coal mines in Luliang district in the coal-rich province and was looking to buy more, Mr Wang said.
But expanding the 17 mines' production capacity to more than 20 million tonnes a year by 2012 from only 3 million tonnes this year might cost a total of 8 billion to 10 billion yuan, including the acquisition cost, Mr Wang (right) said.
The power generation arm of state-backed conglomerate China Resources (Holdings), which started to invest directly in coal mining a few years ago to lock in long-term fuel supplies at competitive rates, will see its self-sufficiency rise to 40 to 50 per cent by 2012 from only 10 per cent this year, he said.
CR Power's coal requirements are an estimated 50 million tonnes this year, rising to 80 million tonnes by 2012, by which time total coal output is expected to reach 40 million tonnes.
