Shenhua Energy(601088.SH), Adaro Power ink MOU on power-coal cooperation
BEIJING, Nov. 25 (Xinhua) - China Shenhua Energy Co., Ltd (601088.SH; 1088.HK) announced on Tuesday that its overseas subsidiary China Shenhua Overseas Development and Investment Company (China Shenhua Overseas) and Indonesia Adaro Power had inked a memorandum of understanding (MOU) on cooperation in an integrated power-coal operation project.
Under the MOU, China Shenhua Overseas and Adaro Power will found a joint venture to develop a 600MW thermal power plant and related power transmission facilities in East Kalimentan in Indonesia.
China Shenhua Overseas and Adaro Power are expected to have 51 percent and 49 percent equity in the joint venture, respectively.
Meanwhile, China Shenhua Overseas tends to buy equities in one or several branches of PT Bhakti Energy Persada, a subsidiary of Adaro Power, to develop coalmine projects, which is expected to feed fuels to the power project. (Edited by Li Xiaohui, firstname.lastname@example.org)