Chinese coal acquisition drags out

US CHINA Mining Group’s hopes of obtaining additional coal reserves in China’s Guizhou province have been stalled following delays in government approval.
Chinese coal acquisition drags out Chinese coal acquisition drags out Chinese coal acquisition drags out Chinese coal acquisition drags out Chinese coal acquisition drags out

 

Lauren Barrett

In 2011, the company entered into an agreement to purchase a Guizhou-based private mining operator which would give it access to a license to produce up to 300,000 million tons of anthracite coal per annum.

However, US China Mining president Hongwen Li said the approval process to complete the transaction had been dragged out due to the provincial government extending the timeline for reviewing and approving both new and existing mining licenses.

“While we have had active discussions with the local regulatory agencies to obtain approval for our proposed acquisition, the process has taken longer than we originally anticipated,” Li said.

“With our excellent operating safety record and strong capital, we remain committed to completing this and other potential acquisitions.”

US China Mining targeted Guizhou for its next acquisition on the back of its excellent safety record and strong capital.

Total coal sales from its Chinese operations in 2011 totaled 1.6Mt, while coal production tipped in at 791,000 ton.

Total revenues for the year reached $US54.4 million.

US China Mining said it was continuing to retrofit its mines in Xing An which would increase output by 50% by 2013.

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