China Yanzhou Coal Australia output rises to 20 mln T 2011-official

Tue Nov 22, 2011

BEIJING Nov 22 (Reuters) - China's Yanzhou Coal Mining Company Limited will produce more than 20 million tonnes of coal from its Australia assets in 2011 after the company signed two M&A deals in Australia earlier this year, Zhang Minglin, vice general manager of parent Yankuang Group, said on Tuesday.

If realised, coal output from Australia this year for the company will rise by 67 percent from last year, as Yanzhou aggressively expands business in Australia.

That accounts for about 40 percent of the compay's total coal output last year, which is 49.4 million tonnes, according to Reuters calculation.

Yanzhou Coal has made four successful M&A deals in Australia and is still keen to acquire more Australian coal assets.

In September this year, Yanzhou Coal agreed to buy two coal companies from Australia's Wesfarmers Ltd for A$296.8 million ($288.5 million).

In August, Yanzhou Coal bought 100 percent equity interests in two Australian coal producers, Syntech Holdings Pty Ltd and Syntech Holdings II Pty Ltd, for A$202.5 million ($222.08 million) in cash.

In 2009, Yanzhou Coal bought Australia's Felix Resources Ltd for $2.9 billion, and in 2004 it bought Southland Coal Mine in Australia and renamed it as Austar Coal Mine Pty Ltd.

(sourced Reuters)