Beijing-based largest Chinese aluminum producer Aluminum Corporation of China (Chinalco) announced on October 28 that it has signed an agreement with Jiexiu, Shanxi-based Jiexiu Luxin Coal Gasification Corporation and Shanxi Aluminum Plant, subsidiary of Chinalco, for investment in a new coal mining joint venture called Shanxi Jiexiu Xinyugou Coal (Group) Corp., based in the northern Chinese province of Shanxi.
Accordingly, Chinalco plans to invest RMB 537 million ($80.3 million) for a 34 percent stake in the joint venture. Its subsidiary Shanxi aluminum plant will invest RMB 253 million ($37.8 million) for a stake of around 16 percent. Jiexiu Luxin Coal Gasification Co,. will hold the remaining shares. The new joint venture coal group is expected to have 0.3 billion mt of coking coal resources with a production life of 75 years.