Dananhu No. 2 coal mine valued at 3.7 billion yuan

A valuation report, dated December 16, 2025, assessed the mining rights of the Dananhu No. 2 open-pit coal mine at 3,717,829,200 yuan. China United Assets Appraisal Group Co., Ltd. conducted this valuation on behalf of China Energy Investment Corporation Limited and China Shenhua Energy Company Limited. The assessment aims to provide a value reference for a proposed share issuance and cash payment by China Shenhua Energy Company Limited to acquire coal and pit-head power assets held by China Energy Investment Corporation Limited.

The valuation, effective as of July 31, 2025, utilized the discounted cash flow method. The mine, with an approved production capacity of 13 million tons per year, has an estimated service life of 105.96 years and recoverable reserves of 1,512.06 million tons. The assessment also considered an average ex-tax coal price of 140.77 yuan per ton for future sales.

Key financial parameters include total fixed asset investment of 2,243,847,700 yuan and working capital requirements of 402,602,200 yuan. The discount rate applied in the valuation was 7.80%, reflecting both a risk-free rate and various risk premiums.