October 08, 2008

Yanzhou Coal to buy mining rights from parent

Xinhua reported that Shanghai listed coal producer Yanzhou Coal Mining Co plans to acquire from its parent Yanzhou Group the mining rights of the Zhaolou Coal Mine in Shandong province for CNY 747.3 million through its controlled subsidiary Heze Nenghua Company.

Zhaolou Coal Mine is designed to have an annual production capacity of 3 million tonnes and is scheduled to come into operation by the second half year of 2008. Its major products will be coking coal, gas coal and low sulfur coal, which are all undersupplied in China.

Yanzhou Group holds a 52.86% stake in Yanzhou Coal Mining and the latter holds 95.67% stake in Heze Nenghua Company.