Following its merger with Gloucester Coal, Yancoal is the largest investment by a Chinese state-owned company in the Australian coal industry.
Queensland Resources Council chief executive Michael Roche said Yancoal was also one of Australia's largest listed coal mining companies with significant assets in Queensland.
“On behalf of the Queensland Resources Council, I am pleased to extend congratulations to the board and management of Yancoal Australia, noting in particular that highly respected Queensland coal industry leader Murray Bailey has been confirmed as chief executive officer of the new company.
“Yancoal’s rise over the past eight years reflects the level of confidence that its major shareholder – Yanzhou Coal – has in the future of the export coal industry and Queensland.”
Yancoal owns Yarrabee mine near Blackwater and Cameby Downs mine near Miles along with a 50 per cent share in the Middlemount project. It is also a Stage 1 owner in the proposed Wiggins Island Coal Export Terminal in Gladstone.
Chinese giant Yanzhou currently owns 78% of the company, which has amassed net debt of $4.1 billion, most of which came from the $3.5 billion acquisition of Felix Resources in 2009. As part of its Foreign Investment Review Board approval for the acquisition, Yancoal had to list on the ASX.
It has net asset value of $2.4 billion, with interests in seven operating mines and six under feasibility study. Apart from its investment in Wiggins Island, Yancoal holds a 27% share in NCIG in Newcastle.