Datang International Power Generation (SHA:601991, HKG:0991) announced that it has entered into a trust fund agreement with Zhong Rong International Trust Company Limited (Zhong Rong Trust), pursuant to which it agreed to contribute RMB2 billion to invest in the specific trust scheme set up by Zhong Rong Trust for a term of three years.

During the term of the specific trust scheme, Zhong Rong Trust agreed to use such trust fund to make capital contribution to a project company under the name of the trustee for the purpose of integrating the relevant coal mines within Dalate Qi in Erdos City.

Zhong Rong Trust will hold 50% equity interest in the project company on behalf of Datang upon completion of the increase in capital contribution by the specific trust scheme to the project company. Upon expiration of the term of the specific trust scheme and the completion of the integration of the relevant coal mines, Zhong Rong Trust will transfer the 50% equity interest in the project company to Datang.

All of the coal mines which the project company intends to integrate are located in Dalate Qi in Erdos City, with a total filed storage capacity amounting to 180 million tonnes and the approved production capacity amounting to 3.9 million tonnes a year. According to the geological condition of those coal mines, with on-site investigation and the current productions of those coal mines, the estimated production capacity may reach 6.3 million tonnes a year.

Source:chinesestock.org