Yanzhou Coal looks to overseas growth
Updated: 2011-04-14 07:01
(HK Edition)
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Yanzhou Coal Mining Co, the Chinese energy producer that bought Australia's Felix Resources Ltd, said it's looking at acquiring other assets as it seeks to expand overseas.
The company has reviewed seven or eight Australian projects including mining rights, mines under construction and those in operation, Zhang Baocai, board secretary at Yanzhou Coal, said in a telephone interview Wednesday from Zoucheng, Shandong province. He didn't identify the assets.
China's fourth-biggest coal producer is seeking more overseas acquisitions to obtain 20 percent of production from foreign countries by 2015. Yanzhou Coal aims to list its Australian unit by 2012, Chief Financial Officer Wu Yuxiang said March 28.
"We will use the funds to boost production, add reserves via both organic growth and acquisitions," Zhang said.
Australia's coal is of good quality and the country's "sound" legal system makes it attractive for Chinese companies to expand there, Zhang said.
The company is considering high quality power-station coal and coking coal for its investments, he said.
Yanzhou Coal "has looked at" Whitehaven Coal Ltd, said Zhang, commenting on a report by the Australian Financial Review that it's among the final bidders for Whitehaven. Whitehaven's board has been considering offers for the past 10 days and may announce its preferred bidder by the end of the month, according to Wednesday's report.
Coal sales totaled 49.63 million tons last year, with 8 million tons in Australia, it said last month. Yanzhou bought Felix Resources in 2009 for A$3.5 billion ($3.6 billion).
Bloomberg
(HK Edition 04/14/2011 page2)