South Africa-based coal producer Coal of Africa Limited (CoAL) has announced that China-based coal producer Haohua Energy International (HEI), a wholly-owned subsidiary of Beijing Haohua Energy Resource (BHE) has received approval from the Australian Foreign Investment Review Board (FIRB) for share subscription in CoAL.
Following the granting of FIRB approval, the initial payment of $20 million will be transferred to CoAL. The regulatory approval from the Chinese authorities is expected to be received by the end of January 2013.
As SteelOrbis previously reported, on October 1 CoAL and HEI signed an agreement according to which HEI would subscribe for up to $100 million of ordinary shares in CoAL at 25 pence per share in two stages.