One of China’s leading domestic longwall mining equipment manufacturers, Hong Kong-listed International Mining Machinery Holdings (IMM), has entered an agreement with Shanxi Coal Transportation and Sales Group, a coal miner and coal equipment producer, to establish a joint venture to meet the enormous demand for coal mining machinery in the rapidly consolidating coal mining market in Shanxi.

The joint venture will be under the name of Shanxi Meijia Mining Machinery, with Shanxi Coal Transportation holding 51% and IMM controlling the remaining 49%. IMM will be responsible for the daily management of the joint venture, which will be principally engaged in the production, sale and marketing of roadheaders and other mining machinery including shearers and AFCs. The two parties have already signed the joint venture agreement, and the planning stage of production, sales and operations for the joint venture is described as being in full swing. Production is expected to start by the end of 2011.

Shanxi Coal Transportation is a large, modernised coal mining and logistics group established by the Shanxi State-owned Assets Management Committee and 11 municipal state-owned assets management committees. Shanxi Coal Transportation is engaged in a wide variety of coal-related businesses, including the sale of coal and coke, coal and coke technology development, the sale of coal chemicals and the production of coal mining machinery.

The statement said: “As the industry consolidation continues, hundreds of small and non-mechanised mines will be closed and replaced by much bigger and more modern mines. These new mines will require mining machinery from companies such as the JV company. Moreover, the central government has given top priority to mine safety and the demand for modern coal mining machinery will continue to rise, providing the JV company with ample development opportunities in the Shanxi market.”