The world’s biggest coal producer, China’s state-owned coal giant, is set to double its cash flow by 2020 from the current year to $4.3 billion, according to a Wall Street Journal report on Wednesday.
The coal giant is set for a major cash infusion as it aims to diversify its portfolio to boost its long-term profits.
“The cash flows are in line with expectations and we expect to double the cash flow over the next six months,” Zhu Rongjun, chairman of China’s national coal exporter, told the Journal.
China is the world’s largest coal producer and the world leader in coal.
It produces about 60% of the world coal reserves, but has struggled to ramp up production due to an economic slowdown.
China’s coal production grew by only about 3% last year and the government has vowed to ramp it back up to 6.8 million metric tons (6.4 million tons) this year, up from 5.6 million tons in 2020.
Last year, coal output in China grew only about 1% from the previous year.