China Aluminum is involved in the coal business and participates in the integration of Shanxi coal enterprises

On October 28, Chinalco announced that it will invest about 537 million yuan to participate in the establishment of Shanxi Jiexiu Xinyugou Coal Industry Co., Ltd., with a shareholding ratio of approximately 34%. At this point, Chinalco officially entered the coal field, and just a few months ago, Chinalco announced that it would develop to the upstream coal industry.

China Investment Consulting Energy Industry Researcher Song Zhichen pointed out that in August this year, Chinalco Mineral Resources Co., Ltd. and China Coal Geology Engineering Corporation signed a strategic cooperation agreement in Beijing. At that time, Chinalco said it would increase the upstream and downstream of the industry. Integration, accelerate the entry into the coal industry closely related to the company's main business. Signing a strategic cooperation agreement with coal exploration companies shows that Chinalco has entered the coal industry as a long-term plan for the company's development. At the same time, Chinalco also said that it is possible to accelerate the pace of entering the coal industry in the near future by acquiring coal mining companies. At that time, the senior executives of Chinalco had just completed an inspection of Xinjiang, and Xinjiang coal resources became one of the choices of Chinalco.

This time, Chinalco will acquire Shanxi Coal Mine as its starting point for entering the coal industry, and it is inseparable from the transformation of Shanxi coal resources. Previously, Chinalco had not shown the intention to participate in the integration of coal resources in Shanxi, which was mainly due to the special nature of coal resources integration in Shanxi. In the previous coal resource integration in Shanxi, it was difficult for foreign companies to participate, and foreign companies that had the honor to participate in the integration of Shanxi's coal resources were all enterprises in the coal industry. Under such circumstances, it will naturally make some foreign non-coal enterprises feel that it is unlikely to participate in the integration of Shanxi's coal resources, and turn to other options. However, just in September this year, Shanxi Province took the initiative to draw some large state-owned non-coal enterprises to Shanxi investment, and gave some enterprises coal resources integration main qualifications, which also provided Chinalco with the possibility of acquiring Shanxi coal enterprises.

Zhang Yulin, research director of China Investment Consulting, pointed out that the reason why Chinalco chose to acquire Shanxi coal enterprises as a starting point in the coal field is also of greater significance to the current development of the company. First of all, Shanxi's coal industry has a solid foundation. After completing the acquisition of Shanxi coal enterprises, it will soon be able to integrate into the production and operation of Chinalco. This is the biggest advantage. Secondly, Shanxi has a superior geographical position. At the same time, the transportation conditions are convenient. Although the Xinjiang region is the focus of the later development of China's coal industry, there is still a certain gap between the production environment of the Xinjiang coal industry and some coal-producing provinces in the central and eastern regions. Finally, it is also driven by national policies. Relevant departments encourage non-coal enterprises to take the industry as a link and shareholding operations as the main means to participate in the merger and reorganization of coal enterprises is also one of the reasons to promote the participation of Chinalco in the restructuring of Shanxi coal enterprises.

According to the “2010-2015 China Coal Industry Investment Analysis and Forecast Report” issued by China Investment Consulting, the involvement of downstream enterprises closely related to coal in coal production and operation will become a new trend in the development of the coal industry. All have begun to get involved in coal production. In the planning outline issued by Chinalco in the first half of this year, it also pointed out that it is necessary to increase the control of coal resources.

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