Blackgold buys Chinese coal mine

CHINESE coal mining group Blackgold International has entered into a share transfer agreement to acquire a 100% stake in Changhong Coal Industry, owner of the QiJiang ChangHong coal mine.
Blackgold buys Chinese coal mine Blackgold buys Chinese coal mine Blackgold buys Chinese coal mine Blackgold buys Chinese coal mine Blackgold buys Chinese coal mine

 

Lauren Barrett

Following the procurement of Changhong Coal Industry, Blackgold will own shares in the company worth $A14.9 million.

Blackgold International said the acquisition of the mine, which is located 50 kilometres from Blackgold’s existing office in Chongqing, was in line with the company’s plans to increase its coal resources.

Despite significant exploration and development undertaken at the QiJang ChangHong coal mine, neither Chanhong Coal Industry nor Blackgold have recorded a JORC-compliant reserve for the mine.

Blackgold has also not provided a production target for the mine.

The acquisition comes soon after Blackgold acquired the WuShan thermal coal mine in southwest China for $A12 million in March.

Blackgold also operates the Caotung and Heiwan underground thermal coal mines in Chongqing province in southwest central China.

The mines collectively produced 730,000 tonnes of product coal in 2010 and Blackgold plans to ramp up to 1Mt this calendar year and 1.2Mt in 2012.

The coal is mainly sold to domestic power generators in the Shanghai region.

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