Major Chinese coal mining company China Shenhua Energy Co., Ltd announced on February 12 that it has completed the payment of a consideration of RMB 853 million ($119 million) to CHN Energy Investment Group (CHN Energy) for the acquisition of 100 percent equity interest in Inner Mongolia-based coal mining company Hangjin Energy, a subsidiary of CHN Energy.
China Shenhua Energy stated that one of the main reasons for this transaction is to reduce interbank competition.
Upon completion of the transaction, the company's retained coal resources and recoverable coal reserves under the national standard will increase by 3.841 billion mt (appraised utilization caliber) and 2.087 billion mt (appraised utilization caliber), accounting for 11.40 percent and 13.59 percent of the company's retained resources and recoverable reserves as of the end of June 2024.
China Shenhua Energy said it believes that the transaction will strengthen the company's competitiveness in the Inner Mongolia region.
