Shenhua denies JV report

China Shenhua Group, the country's largest coal producer by output, refuted a report that its planned coal-to-chemical joint venture with US-based Dow Chemical Company has been grounded.

The initial phase of the Yulin joint venture in Northwest China's Shaanxi Province is progressing as planned, the company said in a statement posted on its website.

News of the "termination" of the JV, with a total investment volume of 125.85 billion yuan ($20.15 billion), first surfaced on May 14 after an industry portal ICIS C1 Energy published a report claiming the project had been grounded due to cash shortage of the two parties.

Shenhua owns a 70 percent stake of the JV while Dow owns the rest, according to the Ministry of Environmental Protection.

The JV is pending approval from the ministry and is now under public review for its environmental impact, Shenhua said.