Mitsubishi Buys into China’s Top Coal Mining Firm
Mitsubishi Corp. has acquired a 0.2% stake in China Shenhua Energy Co., the world’s largest coal mining company in terms of production volume, to expand its natural resources business in China, The Nikkei reported. The major trading house annually imports into Japan about 2 million metric tons of coal produced by the mining firm and plans to boost the amount it handles under a business alliance it plans to make with the company. In addition to the development of coal mines inside and outside China, the two companies aim to broaden cooperation in the environmental business, including emissions credit trading, the treatment of wastewater from coal mines and the installation of energy efficient devices at mines. Mitsubishi, which has purchased about 30 million shares in the Chinese firm for about 15 billion yen ($135 million), does not plan to enter into a cross-shareholding arrangement with the mining company. In 2006, China Shenhua Energy produced 235 million mt of coal at mines in Inner Mongolia and other places, and also runs power generation stations using coal as fuel. It is a core firm of the Shenhua group, accounting for about 80% of group sales.