Jiangsu-based Chinese steelmaker Nanjing Iron & Steel Co. (NISCO) announced on May 18 that it plans to purchase 49 percent of Anhui-based coal miner Jinhuangzhuang Mining Co. for RMB 211.68 million ($31 million).
On May 6, 2010, NISCO and Shandong-based Xinwen Mining Group signed a share-transfer agreement with three of the four shareholders (Xinwen Mining Group being the fourth stakeholder) in Jinhuangzhuang Mining. According to the agreement, 50 percent of shares held by the three shareholders in question will be transferred to NISCO and Xinwen Mining Group, with 49 percent going to the former and 1 percent to the latter. Following the transfer, NISCO and Xinwen Mining Group will respectively hold 49 percent and 51 percent of shares in Jinhuangzhuang Mining.
Jinhuangzhuang Mining was established on September 30, 2006, owning an audited capital of RMB 599.31 million ($87.8 million) by the end of November 30, 2010. The company owns two mine deposits, containing three coal categories - coking coal, anthracite coal and meager coal - and with a total reserve of 95.51 million mt.