Top coal power producer posts $631 mln in losses
- By Yang Xi
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China.org.cn, November 11, 2011
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Coal piles up at a plant of Datang Corporation in Anhui Province. [CFP] |
China Datang Corporation (CDT), one of China's top five power producers, is expected to lose more than 4 billion yuan (US$ 631 million) on its coal power business this year, and may become the year's top loser among China's major power corporations.
CDT's liability ratio has reached 88.7 percent, and 30 of its power plants reported a liability ratio of more than 100 percent, said an insider from the company. Many of the firm's power plants have now closed due to bankrupcy.
Hikes in coal prices have resulted in surging costs for coal-fired business. In October, the average price of thermal coal rose to a record high of 853 yuan (US$135) per metric ton, according to the Bohai Rim Steam Coal Price Index, China's government-run coal price gauge. From 2008 to 2010, losses from China's five major power producers, including China Huaneng Group Corp, CDT, China Power Investment Corp, China Guodian Corp and China Huadian Corp have totaled 60.257 billion yuan (US$ 9.5 billion).
China's business press carried the story above on Friday.
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