Shenhua Group

Shenhua Group is a state-owned mining and energy company in China. It is the largest coal-producing company in the world. It was founded in October 1995 under the auspices of the State Council of the People's Republic of China.

Activities
Shenhua Group operates Shenfu Dongsheng coalfield as well as the affiliated railway assets, power plants, port facilities, shipping fleet, and coal liquefaction projects. In addition to the coal production in China, Shenhua is also looking at investments in Mongolia, Indonesia and Australia.

A coal-to-liquid (CTL) plant in coal-rich Inner Mongolia is expected to be operational in January 2011.

A November 2007 presentation to investment analysts by the President of BHP Billiton Coal, Dave Murray, noted that Drummond had a 5% share of the global coal export trade, making it the equal fifth largest coal exporter in the world. (Shenhua is equal with Drummond).

In May 2012 the Shenhua Group announced they were going to invest 3.82 billion yuan ($602.05 million) coal loading facility in eastern China.

Shenhua Coal-To-Liquids output may quadruple by 2015
In November 2010, it was reported that Shenhua Group may more than quadruple its coal-to-liquid output to 3 million metric tons annually by 2015, compared to 2010, and may increase to 11 million tons a year by 2020, according to head of Shenhua Group’s science and technology development department Gu Dazhao. For 2010, output may reach 649,000 tons, according to the company’s website. Gu also said the parent of Hong Kong-listed China Shenhua Energy Co. may also produce 5 million tons of chemicals and 1.2 billion cubic meters of natural gas from coal annually by 2015, and output may rise to 10 million tons and 18.3 billion cubic meters by 2020, respectively.

Sasol and Shenhua submitted an application to China's National Development and Reform Commission (NDRC) in 2009 to build a 94,000 barrel-a-day plant to convert coal into motor fuel in the Ningxia Hui autonomous region. On March 7, 2011, it was announced that the companies received approval from the Chinese environmental ministry for the plant.

Inner Mongolia
In early June 2010 it was announced that China's top coal producer, the Shenhua Group, will start operating the country's first Carbon Capture and Storage (CCS) plant by the end of year. The 210 million yuan (30.8 million U.S. dollars) project is expected to capture 100,000 tons of carbon dioxide annually. The company stated that a facility capable of handling 3 million tons annually is being planned, but no timetable for construction has been set.

In November 2010, it was stated that a pilot carbon capture and storage facility at the group’s Inner Mongolia coal-to-fuels plant will start operations in January 2011. China may increase its oil product use by 32 percent to 286 million tons in 2015 compared with 2010, according to Cai Xiyou, vice president of China Petroleum & Chemical Corp., the country’s largest refiner known as Sinopec.

Ningxia plant
The proposal for a coal-to-fuels plant in the northwestern Chinese province of Ningxia, a planned venture with South Africa’s Sasol, is awaiting approval from the National Development and Reform Commission, according to head of Shenhua Group’s science and technology development department Gu Dazhao in November 2010.

GE invests in China IGCC project
On January 18, 2011, GE announced that it would be forming a "clean coal" technology joint venture in China with Shenhua. The joint venture company will sell industrial coal gasification technology licenses, conduct research and development and develop facilities around integrated gasification combined cycle (IGCC).

Shenhua and Peabody bid for Tavan Tolgoi coal deposit
In mid-September 2011 Mongolia rejected plans for Peabody Energy, China's Shenhua Group and a Russian-Mongolian consortium to jointly develop the Tavan Tolgoi coal deposit. The Tavan tolgoi coal deposit, which is located in the South Gobi desert near China's northern border, is ranked as the world's largest undeveloped coal deposit. Mongolian officials said they would hold new negotiations with various companies involved.

Controversies
Shenhua Group is China's largest coal miner. Environmental effects of coal are large.

Water pollution
According to Greenpeace in July 2013 Shenhua Group has reduced groundwater levels in an Inner Mongolia region and discharged high levels of toxic wastewater.

Subsidiaries
The company has more than 30 subsidiaries, including:


 * Shenhua Shenfu Coal Co.
 * Dongsheng Coal Co.
 * Shenhua Coal Trading
 * Shenhua Shendong Power Co.
 * Shenhua Railway Co.
 * Shenhua Huanghua Port Co.
 * Shenhua International Trading Co.
 * Shenhua International (Hong Kong) Co.
 * Shenhua Clean Coal Co.

Its subsidiary China Shenhua Energy Company is listed at the Hong Kong Stock Exchange and Shanghai Stock Exchange.

Contact Details
Website: http://www.shenhuagroup.com.cn/english/ (in English)

Related SourceWatch Articles

 * China and coal
 * Global use and production of coal
 * Corporate market share of global coal export trade