Bloomberg News

Korea Electric May Mine Coal, Build Plant in China

May 26, 2008

Korea Electric Power Corp. (015760), South Korea's biggest electricity producer, said it may participate in projects to develop coal mines in China's Shanxi and build a coal-fired plant in the province.

Korea Electric signed a memorandum of understanding with China's Shanxi Energy Industries Group Yechuan Coal Chemistry Ltd. and Samsung Securities Co. to develop the mines, the Seoul- based utility said in an e-mailed statement today.

The power producer is expanding overseas as growth in domestic electricity demand slows. Korea Electric plans to increase its overseas generating capacity to 10,000 megawatts by 2015 from 3,275 megawatts at the end of 2005.

Korea Electric said developing mines in the northern province may enable it to participate in the construction of a coal-fired plant with an output capacity of 1,280 megawatts there, according to the statement.

Korea Electric said it aims to buy a stake in a methanol plant in the province. The facility, yet to be built, will be able to produce 800,000 tons a year of methanol.

Shares of Korea Electric rose 0.9 percent to 33,800 won in Seoul today. The stock has dropped 15 percent this year, compared with a 5 percent fall in Korea's benchmark Kospi index.

To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus