Shougang International to acquire 25 percent stake in Canadian coal project

Monday, 16 August 2010 14:43:24 (GMT+2)

Canadian miner Dehua International Mines Group Inc, Chinese coal miner Kailuan Energy Chemical Co Ltd and Shougang International Trade & Engineering Corp, the subsidiary of Chinese steelmaker Shougang Steel Group, have recently reached an agreement to jointly develop the Gething coking coal field in Canada.

Shougang International will acquire 25 percent stake in the project from Dehua International Mines for RMB 216 million ($31.71 million). Following the acquisition, Dehua International Mines and Kailuan Energy Chemical will hold 24 percent and 51 percent stake in the project respectively.

According to the preliminary studies, the field has a total reserve of 786 million mt of high quality coking coal.

The investors have also agreed a new investment of RMB 237 million ($35 million) divided on shares basis.
 

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