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Saturday, 25 July 09
HUANENG EYES MAJORITY STAKE IN PT BERAU COAL


CCTV reported that, China's largest publicly traded power company has submitted a bid for controlling stake in Indonesia's fifth largest coal miner. This will be Huaneng's first overseas coal mine acquisition deal with a controlling stake if it wins.

Huaneng Power International has submitted a bid for a 51 percent stake in PT Berau Coal. The deal is worth 1 billion US dollars. It will also enable the successful bidder to have the stable supply of coal for power generation. By the end of 2008, the Indonesian firm had coal reserves of 300 million tons. It produced 13.2 million tons of high quality coal last year.


China's largest publicly traded power company has submitted a bid for controlling stake in Indonesia's fifth largest coal miner. This  will be Huaneng's first overseas coal mine acquisition deal with a controlling stake if it wins

Xie Juchen, Branch Chairman of China Electricity Council, said, "The bidding suits the country's policies in this sector. It also suits the growth of Chinese power producers. Huaneng is going to be the first Chinese power company going overseas, and this is a very good example for other firms. "

Imported thermal coal is cheaper these days. The price averages between 65 to 70 US dollars per ton, which is attractive to China's coal-fired power plants. During the first half this year, China imported 40 million tons of coal, nearly double the amount in the same period last year.

If wins, Huaneng will use the coal to supply 15 power plants in China's southeast coal regions. PT Berau Coal also has a Dutch shareholder and a Japanese shareholder. Another 4 international coal enterprises have also submitted bids.

Source: CCTV



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