Zhang's two brothers, Zhang Xinyue and Zhang Xinliang, helped manage the group, which includes several transport companies, coal washing facilities, real estate development companies, and a 3.8-km special coke-transporting railway line.

It was previously reported that Zhang had been suspected by public security departments for possible involvement in gang-related crimes and corruption. He had planned, in 2009, to transfer ownership of the group to the State-owned Datong Coal Mine Group, for a price of 8 billion yuan, according to the report.

But in 2010, China Resources Power Holdings Company bought all group shares for more than 10 billion yuan, while Zhang transferred his assets abroad under a false name.

Jinye Group's website could not be accessed and its phone was not being answered on Sunday.

Yang Xingwang, 51, the Wu'ermao village head, told China Daily that Zhang was a forthright person who had done a lot of good for his village: "He's a very nice man. I never thought he would be wanted by the police."

Yang said Zhang has used his own money to pave roads, build power facilities and other infrastructure for the village and about 300 villagers worked for the group.