OREANDA-NEWS. April 28, 2011. The signing ceremony of the framework agreement for strategic cooperation between Baosteel and China National Coal Group Corp. (hereinafter as "ChinaCoal") was held in Baosteel Tower. According to the agreement, both parties will carry out all-round cooperations in trade, resources development and information communication, etc., striving for alliance of the powers, complementary advantages, cooperation for win-win and common development through the establishment of all-round, solid strategic cooperative relationships, reported the press-centre of Baosteel.

Chairman Xu Lejiang, vice chairman and Party secretary Liu Guosheng of Baosteel Group Corporation, chairman Wu Yaowen, Party secretary and vice chairman Ji Xilai of ChinaCoal attended the signing ceremony. Vice president Li Yongxiang of Baoshan Iron & Steel Co., Ltd. and president Yang Lieke of China Coal Energy Co., Ltd. signed the agreement on behalf of both parties. The signing ceremony was chaired by vice president Wang Jing of Baoshan Iron & Steel Co., Ltd.

As the second largest coal producer in China, ChinaCoal boasts remarkable advantages in coal production and trade, coal chemical, pit-mouth power generation, coal mine construction, coal mining equipment manufacturing, coalbed methane development and the related engineering technical services. Its mining areas are mainly located in Shanxi, Jiangsu, Inner Mongolia, Shaanxi, Heilongjiang and Xinjiang, etc., and the total resources amount exceeds 45 billion tons.
Baosteel has cooperated with ChinaCoal for many years. In addition to the stable cooperative relationship in coal and steel trading, both parties also have extensive and in-depth cooperations in R&D, promotion and application of new products and new technologies in the field of coal mining equipment manufacturing.

According to the agreement, both parties will set up stable cooperative relationship in trading of coal and steel, explore the trading cooperation mode of mutual guarantee of coal and steel; actively explore the cooperative development of coal and other resources; carry out technical exchange, new product development and promotion, keep improving the communication and exchange mechanism and drive the cooperation between both parties to make new achievements continuously.

Ji Xilai said in his speech that the experiences accumulated from the cooperation for so many years are conducive to drive both parties to make greater achievements in the strategic cooperations. He wished that both parties can keep expanding the fields for cooperation, elevate the level of cooperation and become the model for cooperation among central enterprises; join hands to march forward and make concerted efforts to drive the scientific development of Chinese energy industry and strengthen the state-owned economic power.
Liu Guosheng thanked ChinaCoal's long-term support to Baosteel in his speech. He said that Baosteel and ChinaCoal are both central enterprises and therefore should be more in a position to accelerate the transition of development mode and the structural adjustment so as to improve the capability of sustainable development. He wished that both parties can give play to respective technologies, quality, brand and management advantages, strengthen and deepen the cooperation in each field, join hands to defend the market risk together, and actively explore the economic operation mode based on market demand conditions, so as to minimize the costs and maximize the profits of both enterprises.