But the scheme is still conditional on U&D Mining receiving approval to proceed from other Chinese regulators, namely the National Development and Reform Commission, the Ministry of Commerce and the State Administration of Foreign Exchange.

Completion of the scheme also remains subject to approval of the Federal Court of Australia, with the second hearing due before April 19.

The change of leadership in China was blamed for a delay in the approval of the merger.

The scheme of arrangement was approved by Endocoal shareholders on February 28.

“U&D Mining continues to make representations and meet with the relevant Chinese governmental officials in order to secure all of the relevant China approvals,” it advised the Endocoal board.

“U&D Mining has also kept these officials fully informed of other conditions precedent that have been satisfied under the Scheme Implementation Agreement.

“The change of leadership currently underway in China, which affects all levels of government, has delayed the timeliness of the usual approval process for [a] transaction of this nature.

“Under the circumstances, U&D Mining believes they have taken all reasonable steps and exercised their best endeavours to facilitate the obtaining of all the China approvals.”

U&D Mining hopes approvals from the Ministry of Commerce, the National Development and Reform Commission and the State Administration of Foreign Exchange will follow.

U&D Mining has until April 25 to obtain the Chinese regulatory approvals. If they have not been received by that date Endocoal may terminate the scheme agreement unless U&D Mining requests a two-month extension.

“The Endocoal board has no reason to believe that the Chinese regulatory approvals will not be forthcoming and therefore continues to unanimously support the proposed scheme, in the absence of a superior proposal.”