Chinese company secures coal

DIVERSIFIED Chinese miner China Natural Resources has agreed to buy coal investment group Newhold Investments for $US42 million.

Vivienne Ryan

In the deal Newhold Investments and its wholly owned subsidiaries, known collectively as the Coal Group, would fall under CNR’s umbrella.

Newhold owns mining rights, through its 70% owned operating subsidiary Guizgou Yongfu Mining Co, to the Yongsheng coal mine in China’s Guizhou region.

The mine’s coal resource is estimated to be over 120 million tons.

“We have been seeking various opportunities to expand our coal and metal reserves through acquisitions,” said company CEO Feilie Li.

“Given the increasing demand for coal in the PRC, it is our intention to continue our expansion in the resources exploitation business in this enormous market.”