AACI plans second China joint coal venture

摘要

Asian American Coal Inc. (AACI) expects to launch its second joint venture mining project in China next year, executive vice president Stephen Zou told CWL AACI blazed the trail for foreign investors in the coal industry in China last year when it opened the Jincheng project in Shanxi province. The second project would be in the same area, Zou said. The company is still in the process of negotiating transportation arrangements, the marketing and pricing for its output, as well as additional equity infusions, he added.China only has four licensed coal export trading companies, and a quota system gives priority to state mines in its limited rail network. The government also regulates fuel supply sales to China's power plants, and foreign ventures are taxed heavily to ensure the viability of state-owned coal mines, industry officials say. AACI has been negotiating with Beijing for tax exemptions for three years.