China Shenhua eyeing Indonesia, Australia coal mines

China's largest coal producer, Shenhua Energy Co Ltd, is in talks to buy coal assets in Indonesia and Australia, two of the world's largest shippers of the black hydrocarbon, agencies reported.

The company's Chairman Chen Biting did not disclose detail.

Shenhua, the largest operator in the world's top coal consuming country, said Tuesday that negotiations had finally settled on an export price of US$60-$65 per tonne for 2007 with volumes unchanged.

China is shipping a minimal amount of coal to Japan, South Korea or Taiwan, amid difficult 2007 price negotiations. They had faced a deadlock, with the Chinese asking for more than US$70 a tonne up sharply from US$53 last year.

At home, the world's fourth-largest economy is increasingly looking abroad to satisfy demand. Chinese coal imports jumped 53.3 per cent to a monthly record in March, keeping the country a net importer of a commodity that helps power an economy roaring ahead at an annual rate of more than 11 per cent. Customs data has showed that imports were surging from Indonesia, the world's top exporter of the hydrocarbon.(*)