China Coal plans to raise HK$23bn for new projects

16 July 2007 08:43  [Source: ICIS news]

SINGAPORE (ICIS news)--China Coal Energy said it plans to seek a second listing in Shanghai which could raise up to Hong Kong dollars (HK$) 23bn ($2.9bn) for its forthcoming coal and petrochemical projects.

 

The coal-based projects will produce a total of 6.3m tonnes/year of methanol, 600,000 tonnes/year of olefins and 3m tonnes/year of dimethyl ether (DME), it said in a statement to the Hong Kong Stock Exchange on Sunday.

 

China Coal planned to issue 1.5bn new shares, which could raise up to HK$23bn based on the company’s share price of HK$15.3 on Monday.

 

The share issue would be subject to approval from its shareholders and the Chinese authorities, the company said.

 

Petrochemical projects included a 1.8m tonne/year methanol plant, which would feed a 600,000 tonne/year olefins unit in Heilongjiang province and a 300,000 tonne/year methanol plant in Shaanxi province, it added.

 

It also planned to build units in Erdos, Inner Mongolia province, to produce 4.2m tonnes/year of methanol and 3m tonnes/year of DME, but did not provide the start-up dates and the costs of these projects.

 

China Coal’s shares jumped 3.6% from Friday’s close to HK$15.54 at 04:30 GMT on the Hong Kong Stock Exchange on Monday.

 

($1 = HK$7.82)

By: Florence Tan
+65 6780 4359

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