China Coal Energy Co Ltd<601898><1898> will suspend investment in a plant in Jixi, Heilongjiang in North China, which it has already invested RMB 12 million.

The project, which is expected to produce 10 million tons of coal a year, will not be as profitable as planned due to the negative effects from the global financial crisis, said the company in a statement filed with the Shanghai Stock Exchange, adding that it will work out alternative plans for the investment.

The Shanghai and Hong Kong dual-listed company had planned to invest a total of RMB 17.03 million in the project, using the fund from its IPO.

China Coal Energy saw its net profit surged 17.7% to RMB 6.81 billion in 2008, with 100.37 million tons of coal being produced.