October 14, 2008

China Coal Energy to buy Hebei Coal Company

It is reported that China Coal Energy Co plans to acquire Hebei Fengfeng Group for over CNY 10 billions which would be its first purchase after its approaching listing on the Shanghai Stock Exchange.

Based in coal rich Hebei Province in north China, Fengfeng Group owns 7.5 billion tonnes of coal reserves and produced 13 million tonnes of crude coal in 2007. China National Coal Group Corporation, the buyer's parent produced 105.03 million tonnes of coal in the same year.

As per report the two sides have went through a series of negotiations and reached an initial agreement now.

As of June 30th 2007, China National Coal Group had coal reserves of 9.397 billion tonnes including 3.471 billion tonnes of workable reserves and predicted workable reserves.