Yanzhou Coal Mining Takes 1 Billion Tonnes Of Australian Coal



December 6th, 2009 | File Under : Coal - Companies - Mining Exploration

It is reported that Yanzhou Coal Mining Company Limited after two years purchased Australia Southland Coal Mine is making another also the biggest mine purchase in China by buying Felix Resources Limited in Australia and as sources indicate it has made great achievement.

According to its merger plan, Yanzhou Coal Mining is going to complete all stock transaction by the end of December when it will have had 1.5 billion tonnes of resource volume and 10 million tonnes of annual production under its equity in Australia nearly one third of its annual production at home.

As a company specialized in coal mining and prospecting, Felix product include thermal coal, injection coal and semi soft coking coal. Its customers are mainly steel makers and power groups in Asia, Europe, America and local Australia as well. It has a combined coal reserve of over 500 million tonnes including four in-operation coal mines, two that are under development and four projecting projects.

As per report, before being bought Felix annual sales margin reached 22% in the previous three fiscal years a level which largely approximate to that of China listed companies. Felix is expected to achieve AUD 350 million net profit in the coming 2010. With the agreement signed in this August Yanzhou Coal Mining is to buy the whole of Felix’s stock at a price of AUD 16.95 per share marking a total value of AUD 3.33 billion.

Yanzhou Coal Mining plans to increase its raw coal production to 20 million tonnes in Australia by the time of 2015 which is higher than half of its output at home.

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