Florida, US-based SinoCoking Coal and Coke Chemical Industries, Inc, a coal producer and coke processor with assets in China, has announced that on August 10, 2010, its wholly controlled affiliate Pingdingshan Hongli Coal & Coke Co, Ltd (Hongli) has entered definitive agreements to acquire 60 percent of equity interests of Baofeng Shuangrui Coal Co., Ltd and Baofeng Xingsheng Coal Co., Ltd for a total consideration of approximately $12.4 million to be gradually paid.
According to a statement by SinoCoking, the former company operates Shuangrui coal mine and the latter operates Xingsheng coal mine, both located in Baofeng County, Henan Province. They are similar in size, each with 2 million metric tons of estimated coal reserves. Each mining company's annual coal production is currently 150,000 metric tons.
Transfer of equity interests is designated by the issuance by the relevant Administration for Industry and Commerce of a revised business license.