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China Shenhua Energy Co. Ltd will increase its coal output by 15 million tons annually within the next five years to make the company the world's biggest coal producer, Shenhua's top official said on Monday.

 

"By 2010, the company's annual coal output is expected to exceed 200 million tons," said Chen Biting, director of Shenhua's board of directors, while announcing the interim results of the company.

 

To reach the ambitious goal, Shenhua, the world's No. two coal producer, will spend 20 billion yuan (about US$2.5 billion) to 25 billion yuan (US$3.1 billion) between 2006 and 2008 on developing its core assets, including coal mines, railways, sea ports and power generators, he said.

 

In the coming years, Shenhua will purchase from its parent company, the Shenhua Group, excellent assets in such sectors as coal mining and power generating, while seeking to acquire foreign companies in a "prudent and selective way", Chen said.

 

Shenhua posted a 20.5 percent jump in its revenues to 29.53billion yuan (US$3.7 billion) for the six months ending on July 30, with its profits rising 10.4 percent to 8.6 billion yuan (US$1.01 billion).

 

During the period, its coal output and sales increased 11percent and 18.5 percent, respectively.

 

(Xinhua News Agency August 29, 2006)