China Natural Resources has announced that it has, through two indirect wholly owned subsidiaries, entered into an agreement with coal producer Jiangxi Province Coal Group, to jointly establish the Guizhou Puzheng Mining Company.
The joint venture company will be established as an equity joint venture company in Guizhou Province of China.
The company, which is to be owned 64% by China Natural Resources, intends to engage in the exploration and mining of coal and other mineral resources in the Guizhou Province and other regions in China.
Li Feilie, China Natural Resource’s chairman and CEO, said: Coal is the primary energy source for China’s booming economy and supplies about 70% of the country’s energy need. Coal prices remain strong because of increasing demand. It is our intention to further expand our natural exploitation business into this enormous market.