September 07, 2008

China Yudean to acquire 7.5% stake in Whitehaven Coal Ltd

It is reported that Chinese power supplier Guangdong Yudean Group will buy 7.5% stakes in Australia's Whitehaven Coal Ltd to ensure consistent coal supply.

Whitehaven Coal Ltd said in a statement the Chinese company has agreed to pay about USD 63.68 million for a 7.5% stake through Yudean's wholly owned Upper Horn Investments Ltd unit.

Whitehaven said under the terms of agreement, Upper Horn will fund the future development of the Narrabri Coal Project, located in Australia’s New South Wales in keeping with its ownership percentage.

Chinese power companies are now seeking investment opportunities in Australia's mining sector to ensure surging domestic need, home to the fastest growing major economy in the world.