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China Shenhua to invest 17.15B yuan in coal chemical project

China Shenhua Energy Co. Ltd. said Aug. 8 that it will invest 17.15 billion Chinese yuan in constructing a coal-to-olefins plant in Inner Mongolia, China.

The coal chemical project's annual production capacity is estimated at 750,000 tonnes, with 350,000 tonnes for polyethylene and 400,000 tonnes for polypropylene. Of the total investment, 30% will come from working capital.

The Chinese coal major has secured preliminary approval from the local provincial government. However, construction is still subject to further approvals for safe production and environmental protection, among others. There is no estimate on construction commencement or period, the company said.

As of Aug. 7, US$1 was equivalent to 6.72 Chinese yuan.