CHINA Shenhua Energy Co yesterday said it may build a railway to transport coal reserves from neighboring Mongolia, where it is in talks to invest in a project to mine the fuel.
"Once we win the coal project in Mongolia, we will consider building a rail link to transport the fuel here," spokesman Huang Qing told Bloomberg News. He declined to give a schedule for building the link or state the size of the coal project.
Coal producers in China are increasing capacity to meet demand from power companies in the world's fastest-growing major economy. China burns coal to generate about 80 percent of its electricity. Shenhua Energy is studying opportunities to buy and develop coal mines in Indonesia, Australia, Vietnam and Mongolia.