Yanzhou Coal Mining Co., China’s third-largest coal producer, is scanning the market for additional coal acquisitions in overseas markets after becoming the new owner of Australia’s Felix Resources Ltd, the China Daily reported Friday.

Coal reserves in Shandong, where Yanzhou is based, are not as abundant
as those in Shanxi province or Inner Mongolia autonomous region, where
most Chinese coal firms are based, said the newspaper.

Yanzhou had completed the legal footwork to take over Felix by the end
of last year at a price of about 3 billion U.S. dollars, and ranking it
China’s biggest takeover of an Australian firm.

Annual production capacity of Felix is slated to exceed 20 million tons
when it hits full capacity in the next three years. Felix Resources is
expected to generate an annual net profit of 4 billion yuan (588.24
million U.S. dollars) within three years, according to the newspaper.

Expanded production capacity is key for the company to compete with its
peers as coal companies in Shanxi are growing in size following recent
industry consolidation, the newspaper quoted LianWei, an analyst at
First Capital Securities as saying.

Even with the extra cost of freight from Australia, prices of the
imported coal will be competitive in China, the newspaper quoted Lian
as saying.

The price of imported thermal coal from Australia was about 85 U.S.
dollars or 578 yuan per ton, while the price of similar quality
domestic coal sold at around 800 yuan per ton in China, said the
newspaper.

Source: Xinhua

Search to find what you want

• Yanzhou Addiction Share unit sales in Australia before the end of 2012

    Yanzhou Coal Mining Co., China’s fourth-biggest producer of the fuel, said it plans to sell shares in its Australian operations by the end of 2012. An initial public offer would include Yanzhou’s Austar coal mine in New South Wales, and the operations of Felix Resources Ltd., Yanzhou Coal said in

• Vietnam to spend nearly $ 10 billion to the oil reserve system

     Vietnamese Prime Minister Nguyen Tan Dung approved a plan to earmark 9.57 billion U.S. dollars to develop the country’s oil reserve facilities up to 2025, the Labor newspaper reported Wednesday.  The plan is to ensure the country’s energy security, stabilize domestic oil and petroleum market and facilitate production of local oil

• Vietnam rake in $ 1.3 billion of export coal in 2009

    Vietnam’s coal export turnover reached 1.33 billion U.S. dollars last year, a drop of 4.5 percent year-on-year, according to the General Statistics Office of Vietnam on Monday. The country shipped overseas 25.14 million tons of coal in 2009,up 30 percent over a year earlier

• China s Baosteel in February producer prices increased

    Baoshan Iron & Steel Co (Baosteel), the nation’s largest steel mill, significantly raised its February manufacturer prices, the China Daily reported Thursday. Major steel wire product prices went up 300 yuan (44 U.S.

• Chinas Baosteel in February producer prices increased

    Baoshan Iron & Steel Co (Baosteel), the nation’s largest steel mill, significantly raised its February manufacturer prices, the China Daily reported Thursday.

• Yanzhou China approves bid for Felix Resources

    Chinese regulators have approved a bid by state-owned Yanzhou Coal to take over Australian miner Felix Resources Ltd., the company said in a statement. The statement, posted on the Hong Kong Stock Exchange, said China’s National Development and Reform Commission issued an approval letter Thursday. The offer values Felix at

• China s Yanzhou Felix once again offer

    Chinese coal-miner Yanzhou is to resubmit its record takeover offer for Australia’s Felix for a second time, the company said on Monday, after regulators tightened their stance on foreign ownership. Felix said Yanzhou would hand in another reworked bid later on Monday, a month after its first resubmission of the 3.5

• Yanzhou Coal amends Felix takeover plan

    Yanzhou Coal Mining Co has resubmitted its takeover application of Felix Resources Ltd to Australia’s Foreign Investment Review Board, said Oriental Morning Post, citing Yanzhou Coal’s asset purchase report on Sept 13. The deal is expected to be conducted by the end of this year, according to the report. Yanzhou Coal

• Yanzhou Coal amends Felix takeover plan

    Yanzhou Coal Mining Co has resubmitted its takeover application of Felix Resources Ltd to Australia’s Foreign Investment Review Board, said Oriental Morning Post, citing Yanzhou Coal’s asset purchase report on Sept 13. The deal is expected to be conducted by the end of this year, according to the report. Yanzhou Coal

• Chinas Yanzhou Felix once again offer

    Chinese coal-miner Yanzhou is to resubmit its record takeover offer for Australia’s Felix for a second time, the company said on Monday, after regulators tightened their stance on foreign ownership. Felix said Yanzhou would hand in another reworked bid later on Monday, a month after its first resubmission of the 3.5

• Yanzhou eyes opportunities in Australia

    Chinese miner Yanzhou is on the lookout for further investments in Australia as it awaits a decision from regulators on its $3 billion takeover of Felix Resources. The deputy managing director of local subsidiary Yancoal Australia, Boyun Xu, said the company saw growth opportunities in Australia’s vast coal resources and the strong regulatory

• China\u0026#39;s largest coal producer, to coal reserves

    China’s National Development and Reform Commission has commissioned China Shenhua Energy Co., the nation’s largest coal producer, to build 10 storage facilities for coal across the country, reported Tuesday’s China Daily. The newspaper said, citing a senior company executive, that the company is still picking sites for the facilities. He did

• Australia s Macarthur Coal rival bid group

    Australian coal miner Macarthur on Tuesday launched a friendly 670 million dollar (590 million US) takeover bid for rival Gloucester Coal in a move that it said would place it among leading producers. Macarthur said it hoped to acquire 100 percent of Gloucester through a takeover offer valuing the rival

• Shipyard loses money in building tankers of the Year

    An absurd situation has occurred in Split, Croatia, where the building of the tanker of the year by a local shipyard resulted in the loss of 12 million dollars, according to a newspaper.

• China coal power project to increase coal output

    China’s first large coal-electricity joint project, Huaneng Yimin Coal Electricity Corp. aims to increase its annual coal output to 20 million tones this year, reported Friday’s China Daily.  Located in Hulunbuir, Inner Mongolia Autonomous Region, the company, a subsidiary under China’s leading power generator Huaneng Group, now has an installed capacity of