US coal company to develop second China coal mine

US coal company to develop second China coal mine

Asian American Coal Inc (AACI) will develop its second coal mine in China with a local partner in the northern province of Shanxi for three billion yuan (389 million dollars), state media said Thursday.

AACI will hold a 45 percent stake in the project, with the remaining 55 percent being taken by the Lu’an Group, the Shanghai Securities News reported, citing Zou Xiangdong, the US company’s chief executive officer.

The mine has reserves of about 600 million tonnes and a projected annual output of six million tonnes.

It is under construction at present and expected to go into operation in the second half of 2009, Zou said.

AACI was formed by US coal mining companies and financial institutions to invest in coal production, preparation, coal sales and coal-bed methane projects in China.

In 2000, the company and China’s Shanxi Lanhua Group jointly invested in developing Daning coal mine, in which AACI holds 56 percent, becoming the first multinational engaged in coal mining in China, the report said.

Information from: AFP via news.yahoo.com

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