Coal coal joint venture or new choice

In the 2013 coal price negotiations, many coal companies and power companies failed to agree on price issues. At present, many coal-fired long-term agreements have signed a "half-agreed contract" with no quantitative pricing.

For a time, the price of coal contracts became a sensitive topic for coal companies in Shanxi. With regard to final pricing, many coal companies adopted a wait-and-see attitude. This situation has a lot to do with the stagnant state of the coal market since 2012. Moreover, after coal resources were consolidated in the past few years, many small coal mines in Shanxi were merged, restructured, and rebuilt. In the future, they will release more production capacity.

“We have found that all companies seem to have such a psychological preparation that the long-term agreement will be an annual coal contract, short-term pricing, and some even propose monthly and quarterly pricing, in fact, this is in line with market rules.” Yu Shichun said.

It is worth noting that on December 27, 2012, the five major coal groups in Shanxi, Tongji Coal Group, Shanxi Coking Coal Group, Yangmei Coal Group, Shanxi Coal Group, Chun'an Group, etc., together with Yuze Power, Minshan Electric Power, Taiyuan No. 2 Power Plant, Linfen Power companies such as the Second Power Plant have successfully signed a coal and electricity joint venture agreement. Coal and electricity joint ventures are becoming new choices for coal companies and power companies in the market-oriented reform of electric coal.

It is understood that at present, most of the 200,000 kilowatt-plus main generating units in Shanxi Province have coal and electricity joint ventures, and all have achieved profitability. The strategic alliance with equity as the link has enabled the coal and electricity parties to meet directly. On the one hand, the provincial coal mine coal mine association has signed it very quickly and on the other hand, it has also reduced intermediate links. According to the plan of Shanxi Province, by 2015, thermal power companies in Shanxi Province will all achieve the long-term cooperation contract management of coal, and some thermal power companies and coal companies will complete strategic alliances with equity as the link.