China's Yanzhou Coal to acquire twoWesfarmers coal mines for A$297 mn
28 September 2011
China's fourth-largest coal producer Yanzhou Coal Mining Co yesterday offered to buy two coal subsidiaries from Australia's Wesfarmers for A$296.8 million, its third acquisition in Australia since last month.
The Jining, Shandong-based company said in a filing with the Hong Kong Stock Exchange that it will acquire Wesfarmers Premier Coal Ltd and Wesfarmers Char Pty Ltd.
This acquisition comes after Yanzhou acquired two Australian coal producers, Syntech Holdings Pty Ltd and Syntech Holdings II Pty Ltd last month, for a total of A$202.5 million ($222.08 million), in cash. (See: Yanzhou Coal buys two Australian coalmines for A$202.5 million)
Premier Coal engages in exploration, production and processing of coal, while Wesfarmers Char conducts research and development of technology and procedures in relation to processing coal char from low rank coals, the statement said.
Premier Coal mine, located 200km south of Perth, is an open pit coal mine, which produces low ash, low sulphur sub-bituminous coal. It supplies coal to power stations and industrial customers.
It also produces a small quantity of nut coal, which is supplied to metallurgical customers.