China Shenhua and China Resource signs 85 mln-ton coal supply deal

China Shenhua Group, the nation's top coal miner, agrees to offer 85 million tons of thermal coal to the state conglomerate China Resource Co., Ltd in the next five years, with both companies promising to keep the supply price  relatively stable, according to a newly-signed deal here on Saturday.

China Shenhua and China Resource will enhance the strategic cooperation in coal, gas, power generation and real estate market in the next five years, the two companies said at the signing ceremony of a comprehensive strategic cooperative agreement in Hong Kong.

As ruled by the agreement, China Shenhua and China Resource will keep the 85 million-ton coal supply price relatively stable from 2009 to 2013 on the base of market mechanism.

Besides, the two parties have already determined the time of negotiation for the annual sales and purchase coal contracts.

The signing of the agreement, said the representatives of the two companies, represents a strategic draw of the years-long price game between coal suppliers and power plants in the country.

Source: Xinhua