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China National Coal Group aims to double profit in 5 years

By Yu Tianyu (chinadaily.com.cn)
Updated: 2009-03-02 15:08

China National Coal Group (CNCG), the country's second-biggest producer of the fuel, plans to almost double its profit and coal production in the next five years.

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Within that time, the CNCG's profit may climb to 20 billion yuan ($2.92 billion) from 11.3 billion yuan in 2008, and its coal output is expected to reach 200 million tons, the Beijing-based company said on the website of the State-owned Assets Supervision and Ad-ministration Commission on Monday.

The parent company of Hong Kong-listed China Coal Energy Co aims to increase sales to 150 billion yuan in five years from last year's 71.9 billion yuan.

The company plans to build five coal industrial bases in Shanxi, Jiangsu and Heilongjiang provinces, Inner Mongolia and Xinjiang Uygur autonomous regions, integrating its businesses including coal production, coal chemical processing, power generation, machine manufacturing and coal mine construction.

However, coal demand has been weakened and prices may fall due to the financial crisis, increasing the pressure the company faces in 2009, the company said.

Additionally, the adjustment and reform on added-value tax and resource tax has boosted its production cost, it added.