HUADIAN Power International Corp and Yanzhou Coal Mining Co will form a three-billion-yuan (US$396 million) venture that will build, operate and manage two coal-fired power generating units, according to their statements yesterday.

Huadian, the fourth-largest Hong Kong-listed Chinese power producer by market value, will contribute 2.07 billion yuan for a 69-percent stake in the venture, it said in a statement to Hong Kong's stock exchange yesterday. Yanzhou Coal, a unit of China's fourth-biggest coal producer, pledged 900 million yuan of cash for a 30- percent stake in the venture, Huadian Zouxian Power Generation Co, the firm said in a separate statement to Hong Kong's exchange.