November 3 -- China Power International Development (2380.HK) announced that it will establish a 4.98 billion yuan joint venture with China Coal Energy (601898.SH, 1898.HK) to build and operate coal-fired power plants in China, reports Oriental Morning Post, citing a company filing.

China Power and China Coal will hold respective stakes of 80 percent and 20 percent in the joint venture, China Power Shentou Power Generation.

The two parties will also cooperate on other coal-fired power generation projects.

The joint venture will purchase two 600MW coal-fired power generation units from Shentou No.1 Power Plant, a wholly-owned subsidiary of China Power in Shanxi province.

China Coal gave a commitment that it will ensure the joint venture will have sufficient supplies of coal.

Shentou No.1 Power Plant has installed capacity of 1.2 GW and supplies power to Shanxi, Beijing, Tianjin, and Tangshan.

Source:CapitalVue