AAP reported that Chinese state owned Beijing Guoli Energy Investment is to take a USD 20 million stake in Queensland based Cuesta Coal ahead of its listing this year.

The Queensland coal hopeful has a portfolio of 33 exploration permits across the Bowen, Clarence-Moreton, Galilee and Surat basins that are are mostly prospective for thermal (power generation) coal.

Cuesta Coal plans to list on the Australian Securities Exchange in the first quarter of 2012.

Beijing Guoli, a power utility, will invest USD 5 million at 25 cents a share, with a further subscription of USD 15 million at the initial public offer price.

Mr Matthew Crawford MD of Cuesta Coal said the Chinese investment was a significant step forward for Cuesta's listing although regulatory approval from China was still needed for Beijing Guoli.

The deal comes less than a month after the Chinese company invested USD 16 million for 45% stake in another Australian company with coal interests, the ASF Group.

(Sourced from AAP)