Huaneng signs coal purchase contract.(Brief Article)

China Chemical Reporter, August, 2004

Huaneng Power International, China's largest independent power producer, has agreed to buy more than 30 million tons of coal from Shenhua Group, the largest coal producer, over the next three years.

The two companies have agreed on a basic coal price and will allow the price to float up or down by no more than 5 percent within one year.

The long-term contract will help Huaneng Power secure ample coal supplies at a time when many power plants are hungry for coal.

Shenhua Group says it is a win-win deal for both companies and the contract could be extended after three years.

Huaneng says the deal is essential for its plan to expand production capacity by at least two-thirds by the end of 2008.