Yanzhou Coal, Huadian Power launch partnership

Yanzhou Coal Mining has announced it will establish a joint venture with Huadian Power International and the asset managing company of Zou City, Shandong province, Economic Observer reported (in Chinese). The move marks the first foray of Yanzhou, which is listed on the New York Stock Exchange and a part of the FTSE/Xinhua China 25 Index, into the relatively new area of cooperation between mining and power companies. The partnership will extend the mining company's business to the downstream industrial chain, in a bid to shelter it from the risk of decreases in the price of coal. Yanzhou Coal Mining will invest US$120 million in the venture, accounting for 30% of the registered capital. Huadian Power International is one of Yanzhou's largest clients.