Datong Coal Mine Group to Expand Capacity to 20 Gigawatts by 2015

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Researched by Industrial Info Resources China (Beijing, China)--Datong Coal Mine Group Company Limited (Datong, Shanxi), one of the leading coal producers in China, has decided to increase its presence in the power generation sector and is planning to expand its installed capacity to 20 gigawatts (GW) by the end of the 12th Five-Year Plan (2011-15), according to Jingang Guo, the general manager of Datong Coal Mine Group at the Coaltrans China 2012 conference in Beijing on April 17.

As reported, these power plants will be able to consume more than 70 million metric tons of coal locally.

During the 11th Five-Year Plan (2006-2010), through cooperation with leading power producers such as China Datang Corporation (Bejing), China Guodian Corporation (Beijing) and Shanxi International Electricity Group (Taiyuan, Shanxi), Datong Coal Mine Group completed the construction of four mine-mouth power plants with a total installed capacity of 3.85 GW. All of the plants are profitable. In 2011, Datong Coal Mine Group established its electric power company. Through the acquisition of Zhangze Electric Power Company Limited (SZ:000767) (ZEPC) (Taiyuan, Shanxi), its installed capacity was largely improved. As reported, Datong Coal Mine Group itself currently has another 9 GW of capacity to be built. As a subsidiary of Datong Coal Mine Group, the ZEPC also has 2.4 GW of power projects that have received preliminary approval and another 16 GW of installed capacity is under way.

With the implementation of its coal and electricity integration strategy, Datong Coal Mine Group will accelerate its strategic transfer. By the end of 2015, its sales income from non-coal businesses will account for more than 60% of its total income, and more than 50% of its coal output will be consumed locally.

Datong Coal Mine Group's coal output reached 115 million metric tons in 2011. In 2012, Datong Coal Mine Group will have Majialiang, Selian and Madaotou 3 coal mines beginning commissioning. Each of these mines has an output of more than 10 million metric tons of annual production capacity. It's expected that its coal output will reach more than 125 million metric tons in 2012.

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