Number 2 coal miner to raise almost $80bn

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The world's second-largest coal mining company China Shenhua Energy Co (CSEC) may raise a $78.5 billion (A$90 billion) acquisition fund by selling new shares and reducing its parent's holding to over half, according to Bloomberg.

Reports suggest that the company is currently in preliminary investment talks in Indonesia, with a view of targeting further deals in Australia and Mongolia.

"It's very important to use not only organic growth, but also mergers and acquisitions to make our enterprise larger, better and more profitable. We have huge room to make some acquisitions,'' president Ling Wen told Bloomberg in Beijing.

At present, CESC's parent company Shenhua Group Corp holds a 74 per cent stake in the company.

In November, HSI services company's quarterly review stated that it would add CESC to the Hang Seng ranking index from December 10th at 2.39 per cent.

The company currently ranks global second behind St. Louis-based Peabody Energy Corp in coal sales. However, its stock more than doubled in 2007 exceeding the advance in the benchmark Hang Seng index which stands at 46 per cent.