The agreement between Datong and Guodian dictates both groups devote efforts to exploring domestic and overseas coal resources to meet the needs of both parties, Interfax China Business News reported.

The agreement between the Yangquan Group and Guodian focuses on cooperation on pit power projects.

Currently the Datong Coalmine Group produces 50 million tons of coal per year and the Yangquan Coal Group has an output of 22.1 million tons.

The China Guodian Group is one of the five power giants in China, consuming about 65 mln tons of coal a year to fuel its power plants, Interfax said.

According to Chinese reports the move was seen as a way to solve the price disputes between the coal industries and power enterprises.