China Huaneng Group, parent of Huaneng Power International Co. Ltd.<600011><902>, paid RMB 4.75 billion to get exploration rights for a coalfield in Northwest China's Gansu province in a bid to tap into the coal resources in the region and boost its coal-fired electricity output, according to sources.

The Zhengningnan coalfield, located in Qingyang city, Gansu province, has estimated proven reserves of 680.48 million tons, covering an area of 88.18 square kilometers.

It was reported that the Beijing-based Huaneng Group would spend about RMB 20 billion in the development of coalfield as well as the supported facilities, which is expected to start at the end of this year.

Despite soaring prices of coal, Huaneng Group's electricity production rose 22.96% year-on-year to184.9 billion kilowatt hours (kWh) for the first half of this year, accounting for about 11% of the country's total. Wind generators produced amounted to 509 million kWh of the total, a 132.07% rise year-on-year. Hydropower plants' output rose 36% from a year earlier to 6.226 billion kWh.