Beijing: China’s Shenhua Group has signed an agreement with Russia’s state-run company Rostec to jointly develop coal reserves in Russia’s Siberia and the Far East.
The total investment will reach around $10bn, including the joint development of the coal mine area, infrastructure, power generation facilities. The project is expected to start by the end of this year and to be operational by 2018.
Sergey Chemezov, Rostec's ceo, said his company and Shenhua will each take a stake of 50% of the joint venture, which is expected to have a return rate of about 22%.
The project aims to export coal to the Asia Pacific region, especially China. It also includes investing $1bn to build a coal harbour with an annual cargo throughput of 20m tons.
Shenhua Group is the largest coal producer in China, it operates several coal terminals at a number of major domestic ports and a bulk shipping fleet with total capacity of 2.5m dwt. [09/09/14]