Huaihe Energy (SHA:600575) agreed to invest 68 million yuan to establish a joint venture that will develop projects in Inner Mongolia's Kubuqi Desert Base, according to a Shanghai bourse filing on Thursday.
The venture, to be named Guodian Power Huaineng Base (Inner Mongolia) Energy, will have an initial registered capital of 200 million yuan.
The Chinese power company will own 34% of its capital. Its venture partners, GD Power Development (SHA:600795), also named Guodian Power Development, PetroChina Taihu (Beijing) Investment and Ordos New Energy Development & Utilization, will own 51%, 10% and 5%, respectively.
Huaihe's shares fell 3% during the afternoon trade.