The Sentient Group, a private equity firm focussing on the metals, minerals and energy sectors, has invested US$34m for a 30% stake in SDIC Xiyang Energy, a joint venture that will operate two anthracite coal mines and a 270MW coal-gangue fired power station in Shanxi Province, China.

Sentient's principal partner in Xiyang Energy is the State Development and Investment Corporation (SDIC), who owns 60% of Xiyang Energy and is the operator of the mines and power station. SDIC is the largest investment holding company in China owned by the Central Government with an asset base of more than US$15 billion. The remaining 10% of Xiyang Energy is held by Xiyang Feng Hui.

Sentient chairman Peter Cassidy says: "We are excited to be a partner in Xiyang Energy with SDIC. It represents the culmination of many years of getting to know one another to the point where we are totally comfortable to make our first investment in China alongside them."

Xiyang Energy investment manager Mei Yao says: "SDIC is a world class operator, comparable to any in the West. It combines advanced technology with quality management to operate in an environmentally friendly, safe, efficient and profitable manner."

Xiyang Energy is the sixth investment for the US$375 million Sentient Global Resources Fund II which was raised in 2006. Other investments are in commodities such as coal bed methane, gold and copper and are in Argentina, Australia, Papua New Guinea and Namibia.