Perennial Energy finalizes new coal mine consolidation plan, boosting output

Perennial Energy Holdings Limited, along with its subsidiary and Guizhou Huaneng Jiayuan Coal Co., Ltd., has submitted a new 2025 coal mine consolidation proposal to the Panzhou Municipal People's Government. This follows the mutual agreement to not proceed with a previously announced consolidation plan involving three adjacent coal mines, citing regulatory, market, economic, and strategic considerations.

The new 2025 proposal focuses on consolidating two adjacent coal mines: Xiejiahegou Coal Mine, indirectly wholly owned by Perennial Energy, and Youyi Coal Mine, owned by Huaneng Jiayuan. Upon completion, the consolidated mine will operate under the Xiejiahegou Coal Mine name, and Youyi Coal Mine will cease to exist. Subject to regulatory approval, Xiejiahegou Coal Mine could increase its annual production capacity from 450,000 tonnes to 1.2 million tonnes.

Additionally, Perennial Energy and Huaneng Jiayuan plan to explore development opportunities for Huaneng Jiayuan’s wholly-owned, currently idle Jieji Coal Mine. The company emphasizes that the termination of the prior plan does not alter its strategic focus on coal resource integration. These new initiatives are subject to further negotiation and regulatory approvals.