Qinghai Province-based Chinese steelmaker Xining Special Steel Co. has announced that it has agreed with its two partners, Shandong Energy Feicheng Mining Group Co. and Lanzhou Coal Mine Supporting Materials Co. to increase the capital of their joint venture coal company, Qinghai Jiangcang Energy Development Co., by RMB 120 million ($19.76 million) to RMB 360 million ($59.29 million).
The increase in the joint venture's capital is expected to boost its liquidity and improve its debt structure, The three partners had jointly established Qinghai Jiangcang Energy Development Co. in March 2004.
According to the financial report of Xining Special Steel for the first half of the current year, Jiangcang Energy Development's net profit in the given period amounted to RMB 3.287 million ($0.54 million), contributing less than 10 percent to the net profit of Xining Special Steel for this period.
