Rizhao Port, one of China's top iron ore and coal ports, plans to raise around CNY1.45bn ($212.4m) from a private placement.

The Shanghai-listed company plans to offer 125m to 200m shares to not more than 10 designated investors, it said.

Rizhao, which is based in Shandong province in the north of the country, says the issue price will be just over CNY7 per share.

Proceeds from the private placement will go towards funding a new coke terminal project in Shijiu port, in Rizhao's western port area.

In March Rizhao reported a 30% increase in total cargo throughput to more than 30mt in the first two months of 2010.

The port said the spike in throughput was driven by China’s demand for imported commodities such as iron ore and coal.

Iron ore volumes at the port were 11mt in both January and February, year-on-year increases of 45% and 39% respectively.

With the introduction of new facilities Rizhao hopes to increase cargo throughput at the port to 200mt in 2010 from the 180mt seen last year.

Rizhao recently reported a 90% increase in first quarter net profits to CNY104m on the back of higher cargo volumes and handling charges.