Hong Kong listed Yanzhou Coal Mining Company has decided to buy thermal coal exploration and production companies in Queensland. The Yanzhou Coal Mining Co will spend $202.5 million on acquiring Syntech Resources Pty Ltd and Syntech Holdings II Pty Ltd, from GS Power Holdings.
The companies are both registered in Brisbane. They operate a thermal coal mine which is situated in the Surat Basin, 360 km north-west of Brisbane. The mine, in the first stage of development of the Cameby Downs coalmine project, has an annual commercial coal production capacity of 1.4 million tonnes.
The second stage of development should increase the production capacity of the mine to 11.4 million tonnes of commercial coal a year. The mine is located 460 km away from the Wiggins Island Coal Port Terminal at Gladstone making it easy to export back to China.
The Jining, Shandong based Chinese coal producer thinks that the acquisitions will enhance their back up resources reserve and sustain their development capability. The company is owned by the Yankuang Group. It operates 6 coal mines in China along with a regional rail network. It has a wholly owned subsidiary by the name of Yancoal Australia which operates a coal mine in New South Wales.