2010-09-07 11:06

Yanzhou Coal Mining, one of China's top coal producers, said it planned to acquire 51 percent of Inner Mongolia Haosheng Coal Mining Ltd for about 6.65 billion yuan (($980 million), Reuters reported Tuesday.

The company will acquire a 35.5 percent stake in Inner Mongolia Coal Mining from two sellers at 4.63 billion yuan, and seek to buy a further 15.51 percent via an open bidding process for about 2.02 billion yuan, in a bid to increase its reserves, said the report.

Yanzhou Coal said the deal would give it control of 838.4 million tons of coal resources, the report said.

State-owned Yanzhou Coal has been scanning the market for additional coal acquisitions after its purchase of Australia's Felix Resources Ltd last year. 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.

Haosheng was incorporated on March 26 and is now owned by Eerduosi Jinchengtai Chemical Co, Shanghai Huayi (Group) Co, Shandong Jiutai Chemical Industrial Technology Co and Ordos City Jiutaimanlai Coal Mining Co.