China Resources Power to buy 21 Shanxi coal mines

China Resources Power (CRP; 0836.HK) is planning to buy 21 coal mines in Taiyuan, Shanxi province, with a total capacity of more than 7 million metric tons per year, Reuters reported. CRP hopes the purchase – following the purchase of 39 mines last year – will help it to boost its self-sufficiency in coal. CRP plans to upgrade and expand its mines to produce a total of 30 million tons per year, a third of the company’s total consumption, by 2012. The company said it would also invest US$1.5 billion per year in renewable energy projects for up to five years. Increasing its own supply of coal will allow CRP to improve profitability by more effectively controlling costs; while coal prices are set by the market, electricity prices remain closely controlled by Beijing.