Executive says annual production growth will average 10.4pc Shenhua Group, China's largest coal producer and parent of listed China Shenhua Energy, plans to quadruple its annual coal output to 800 million tonnes by 2020, according to a senior manager. The target indicates an annual growth rate of about 10.4 per cent. The company is on track to produce 200 million tonnes of coal this year, up a third from 150 million tonnes last year, Gu Dazhao, the general manager of the group's scientific and technological development department, told the China Coal Summit yesterday. 'Our output may exceed that of the United States' Peabody Energy, which will make us the world's largest producer, but until the arrival of the end of the year, we can't say for sure,' he said. Peabody sold 240 million tonnes of coal last year and has exceeded that amount this year as it pursues a minimum 12-month target of 255 million tonnes, according to the company's website. The bulk of Shenhua Group's coal mine assets have been injected into China Shenhua, which produced 66.7 million tonnes of coal in the first half. The parent company still holds some mines and exploration rights. Shenhua Group's output target means the parent will need to ramp up its investment in resource exploration and development to avoid the shortening production life of its reserves. At the end of last year, China Shenhua had 6.32 billion tonnes of probable and proven coal reserves, equivalent to 47 years of production based on last year's output, according to a CICC research report. Mr Gu would not comment on the investment plan to develop reserves. The group aims to more than triple its power generation capacity to 48,000 megawatts by 2020 from 13,000MW this year, including an increase in wind power capacity to 1,000MW by 2010 and 2,000MW by 2020 from an existing 40.5MW. It also intends to produce 30 million tonnes of liquid fuel such as petrol and diesel annually by 2020 by converting coal into liquid fuel.