Australian miner Gloucester Coal Ltd has announced that its shareholders have approved the merger with Shanxi Province-based Chinese state-owned coal producer Yanzhou Coal Mining Company's Australian subsidiary Yancoal Australia Limited.
The merger will create Australia's largest coal company, which will produce 12 million mt of thermal, coking and pulverized coal annually. The merged company is also expected to increase its coal output from 12 million mt to 25-33 million mt by 2016.
Yanzhou Coal will have 78 percent of the shares, while Gloucester and its parent company Hong Kong-based trader Noble Gorup will own 9 percent and 13 percent shares respectively in the new company.
The merger approved by the Australian Foreign Investment Review Board (FIRB) is still subject to approval by the Chinese authorities.