Gansu Energy Chemical (SHE:000552) plans to construct a subsidiary that will manage the construction of an 8.3 billion yuan thermal power project, according to a Shenzhen Stock Exchange disclosure on Tuesday.

The subsidiary, Gannenghua (Lanzhou New Area) Power Generation, will be a power generation company with a registered capital of 1.6 billion yuan.

The project, located in Lanzhou New Area, China, will include the building of two 1,000-megawatt high-efficiency ultra-supercritical air-cooled coal-fired generator units. The generator will generate a power generation capacity of 9 billion kilowatt hours every year, the Chinese coal mining company said.

The company's shares slipped over 1% in recent trade.