Armed with HK$10.78 billion in cash, Citic Resources Holdings is seeking to acquire coal and oil resources in China and other countries.
'Expansion from new investment opportunities is on the agenda,' said Zeng Chen, the vice-chairman and CEO of the Hong Kong-listed firm. 'I would like to do a multibillion dollar deal in the next 12 months. We like to grow this company. Now we have HK$10 billion in cash. If we have acquisition opportunities, this will enable acquisitions.
'Our focus will be coal and oil. If there is a good coal opportunity, we won't pass it by. We will focus on Kazakhstan, Australia, China, Indonesia and Africa,' Zeng said.
In addition, Citic Resources executive director Rosanna Li So-mui said the Chinese state-owned resources company planned a capacity expenditure of more than HK$2 billion for this year, most of which would be spent on developing its Yuedong oilfield in Liaoning province.
Production started in Yuedong last year, and facilities on platform B will begin operation this year. Yuedong will reach full production capacity in 2015.
Citic would further increase oil production in its Karazhanbas oilfield in Kazakhstan, which was its largest oil-production facility, Zeng said.