China Shenhua Energy Company Stock

China Shenhua Energy Company Limited engages in the production and sale of coal. The company also engages in the generation and sale of power in the People’s Republic of China (the PRC). The company is a subsidiary of Shenhua Group Corporation Limited.

The company operates coal mines, as well as an integrated railway network and seaports that are primarily used to transport its coal sales. It also operates power plants in the PRC, which are engaged in the generation and sale of coal-based power to provincial/regional electric grid companies. The company operates in the PRC and the Asia Pacific region.

Segments

The company’s segments include Coal, Railway, Port, and Power.

Coal Operations

This segment produces coal from surface and underground mines, and the sale of coal to external customers and the power segment. It primarily sells its coal under long-term coal supply contracts. This segment includes Shendong Mines, Zhunge’er Mines, Wanli Mines and Shengli Mines. As of December 31, 2008, the company had recoverable coal reserves of 11.457 billion tones with resource of 17.996 billion tones.

Railway Operations

This segment provides railway transportation services to the coal mining segment and external customers. It owns and operates five railways, including Shuohuang Railway, Shenshuo Railway, Dazhun Railway, Baoshen Railway and Huangwan Railway, with an aggregate length of approximately 1,367 kilo meters.

Port Operations

This segment provides loading, transportation and storage services to the coal mining segment and external customers. It owns and operates Huanghua Port and Shenhua Tianjin Coal Dock with annual seaborne coal capacity exceeding 100 million tonnes. It also transports coal through third party ports, such as Qinhuangdao port and Tianjin port.

Power Operations

This segment uses coal, sourced from the coal mining segment and purchased from external suppliers, to generate electric power for sale to external power grid companies and to the coal segment. It operates the coal-fired power generation business and also operates wind power and gas-fired power generation business. It also operates Yuyao Gas-fired Power and Zhuhai wind energy with power generation of 180 million kwh and 30 million kwh respectively and power output dispatch of 170 million kwh and 30 million kwh respectively in 2008. As of December 31, 2008, the company controlled and operated 14 coal-fired power plants with total installed capacity and equity installed capacity reaching 18,001 MW and 10,777 MW respectively. In 2008, gross power generation of the company’s coal-fired generators was 97.59 billion kwh.

Customers

The primary customers of the company’s coal sales include power plants and metallurgical producers in the PRC.

History

China Shenhua Energy Company Limited was founded in 2004.