ARCO SIGNS COOPERATION AND INFORMATION EXCHANGE AGREEMENT WITH CHINA'S HUANENG COAL CORP.
DENVER, Aug. 17 /PRNewswire/ -- ARCO (NYSE: ARC) and Huaneng Coal Corp. (HCC) have entered into an Agreement for Cooperation and Exchange of Information that could eventually lead to joint development of coal mining projects in the Shenfu and Dongsheng coal mining areas of China as well as other mining areas which may come under HCC's business domain. Under terms of the agreement signed Aug. 6, a new company, ARCO Coal China Inc. (ACCI), a subsidiary of Los Angeles-based ARCO, has been created to provide HCC with consulting services on coal mining development. In turn, HCC will provide ACCI with data and preference in developing various joint investment opportunities relating to HCC's mining areas in China. Richard Pick, president of ACCI and vice president of Denver-based ARCO Coal Co., a division of ARCO, announced that ACCI will soon open an office in Beijing to be headed by ACCI Vice President Johnny Coffey. ARCO Coal Co. is one of the largest coal producers in the United States, where it operates underground and surface coal mines in Wyoming and Colorado, as well as in Australia, where ARCO Coal Australia Inc. is involved in three mining operations. Huaneng Coal Corp. is in charge of the development of Shenfu and Dongsheng coal mining areas, one of the four trans-century projects of China, which has the potential to become one of the largest energy bases in China. "ARCO already has a strong presence in China through its international oil and gas operations," said Pick. "In conjunction with the China National Offshore Oil Corp., ARCO is developing the $1.2 billion Yacheng gas project in the South China Sea, which will deliver natural gas to Hong Kong and Hainan Island. We see ARCO Coal China's potential entry into the China coal business as a further step by ARCO in this important energy marketplace." China is the largest coal-producing country in the world, producing approximately 1.1 billion tons per year as compared to 1992 total U.S. coal production of just under 1 billion tons. The country has announced plans to more than double its coal production in the next 30 years. -0- 8/17/93 /CONTACT: Terry O'Connor of ARCO, 303-293-4680/ (ARC)
CO: ARCO; ARCO Coal China Inc.; Huaneng Coal Corp.; ARCO Coal Co. ST: Colorado IN: OIL MNG SU: JVN
JB-JL -- LA003 -- 3534 08/17/93 12:07 EDT
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|Date:||Aug 17, 1993|
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