China Shenhua Energy, the listed flagship of the mainland's largest coal-mining firm, is in talks to buy mines in Indonesia and Australia as part of the country's strategy to tap overseas energy resources to sustain high economic growth.
Chairman Chen Biting said yesterday the possible purchase was part of Shenhua Energy's plan to become a global player.
'Our negotiations involve both large and small mines,' he said, adding timing of any deal would depend on the sincerity of all parties involved.
Beijing has been encouraging mainland resources firms to develop and invest in domestic and overseas markets to ensure stable energy and raw materials supplies.
However, unlike oil and gas and metals firms, mainland coal firms have made only a handful of overseas acquisitions as China is largely self-sufficient in coal.
Yanzhou Coal Mining is the only Hong Kong-listed coal-mining firm that has invested in overseas mines in Queensland in Australia.
