SOURCE: China Energy Corporation

December 15, 2008 09:30 ET

China Energy Comments on Government Coal Pricing Policy Changes

Company to Benefit From New Market-Oriented Pricing Mechanism

ERDOS CITY, CHINA--(Marketwire - December 15, 2008) - China Energy Corporation (OTCBB: CHGY), a leading producer of coal, heat, and electricity in Inner Mongolia, China, is pleased to provide this statement regarding recent policy changes announced by the National Development and Reform Commission (NDRC), the State agency responsible for economic policy and social development in China.

"The adoption of free market pricing of coal in 2009 will further strengthen the Company's position within the rapidly growing energy market in Inner Mongolia," said Mr. WenXiang Ding, President of China Energy. "The ongoing expansion and technology upgrades at our coal, heat and power co-production facilities will allow us significant operational and economic advantages over our competitors as domestic prices begin to reflect to the real supply, demand, scarcity, and environmental costs of coal."

Inner Mongolia TeHong Coal and Power Co. Ltd, the Company's wholly owned subsidiary, (pursuant to the Trust Agreement entered into on December 31, 2007) is currently undertaking a large-scale expansion and technology upgrade of its LaiYeGou Coal Mine operation. Annual coal production capacity is expected to increase by 80% to 900,000 tons with overall coal recovery rates increasing by 50 to 80%.

Additionally, recent enhancements at the Company's thermoelectric heating and power generating plant have increased its annual heat production capacity by over 150 times from 736,000 megajoules to 110,400,000 megajoules.

About China Energy Corporation

China Energy Corporation, through its wholly owned subsidiaries (pursuant to the Trust Agreement entered into on December 31, 2007), is a leading producer of coal, heat, and electricity in China. The Inner Mongolia TeHong Coal and Power Co. Ltd. operates the LaiYeGou Coal Mine with a current production rate of 500,000 tons per year. The Inner Mongolia Zhunger County Heat Power Co. Ltd. operates a modern thermoelectric heating and power generation plant, along with twenty heat transfer stations in the XuanJiaWan District of Zhunger County. The two companies, with total assets in excess of US$60 million and over 500 employees are located in Inner Mongolia, a rapidly modernizing autonomous region of the People's Republic of China.

To learn more about China Energy Corporation, visit www.chinaenergycorporation.com

Forward-Looking Statements

This press release includes "forward-looking statements," which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainties, and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this press release.

Contact Information

  • For further information, contact:
    China Energy Corporation
    Investor Relations
    Tel: (702) 545-6628
    Email: chgy.ir@gmail.com