Yanzhou to buy Jining mine

Yanzhou plans to issue 100 million shares to fund the purchase of the Jining III coal mine from its parent company.

Staff Reporter

Yanzhou Coal Mining plans to buy the Jining III coal mine for US$310 million from its parent Yankuang, subject to shareholders giving their approval at an extraordinary general meeting to be held in September.

 

The acquisition would be funded by proceeds from a planned issue of 100 million Chinese currency A shares and other sources of internal financing. Yanzhou Coal is currently debt free and has assets exceeding $918 million.

 

Jining III, located in China's eastern Shandong province, was expected to start commercial production in the fourth quarter of this year. The mine is forecast to produce 4 million tonnes of coal next year and will increase output to 8Mt by 2005 when it hits full production.

 

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