Northwestern China-based Shaanxi Heimao Coking Co., Ltd. plans to set up a fully-owned subsidiary in Ceke of Inner Mongolia in northern China to mainly engage in importing Mongolian coking coal, the company said in an announcement on October 10.
The new subsidiary, Inner Mongolia Yiyuanju Coal Trading Co., Ltd., with a registered capital of 100 million yuan ($14.1 million), will be mainly engaged in Mongolian primary coking coal import business and is expected to enhance the stability in coal supply for Shaanxi Heimao Coking and other subsidiaries.
As Mongolian coking coal has greater price edge than domestic coal, the establishment of Yiyuanju firm is expected to reduce raw material purchase costs of the mother company.
After its official operation, the firm is expected to handle over 1 million tonnes of coal business with Mongolian miners per year, Shaanxi Heimao Coking said.
Shaanxi Heimao Coking did not give details for the establishment schedule of the subsidiary but said it is in the preparatory stage.
(Writing by Emma Yang Editing by Jessie Jia)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.