Chinese state-owned power company Huadian Power International is making a move for coal mining companies to ensure reserves.

Huadin Power will acquire a 35% interest in Inner Mongolia Fucheng Mining from XinKuang Inner Mongolia Energy for $73m.

The company will also acquire a 25% stake in Inner Mongolia Ertuokeqianqi Changcheng Mine for $26.4m.

Fucheng Mining puts out 1.2 million tonnes per annum, while Changcheng Mine has 600,000t.

Under the deal, Huadian Power will receive a total of two million tonnes of coal from Fucheng Mining and Changcheng Mine.

Huadian Power previously bought 70% of two Shanxi mines, with a 1.35 million tonnes combined yearly production capacity, and in September it purchased a 45% stake in Ningxia Yinxing Coal, with a 5.8 million tonnes yearly production capacity.

Huadian Power’s investments could meet 7% of demand for its coal-fuelled power stations by the second half of 2010.

The company says it intends to purchase additional Coal Mines to help it achieve its goal of 30 million tonnes annual production capacity, which could meet 30% of its coal demand by 2013.