Yanzhou to sell shares for purchase of two coal mines
Recent market reports reveal that Yanzhou Coal Mining Co, one of leading coal producers in China, is going to sell its shares in order to cover cost of share acquisitions in two coal mines, located in Shanxi and Shandong, and a methanol plant in China. Yanzhou Coal plans to gain Hong Kong$ 1.27 billion (almost $163 million) through the sale of 153 million shares. Balance cost will be covered by internal resources and maybe by further share sale. Company believes that these acquisitions will improve its competitiveness against China's other leading coal producer Shenhua Coal Group Corp by expanding its production capacity. Production start for one of the mines is forecasted as end of 2005 at earliest. As reported by SteelOrbis last month, Yanzhou Coal purchased a coke plant in Germany. The plant, which is planned to be transplanted to China, has a production capacity of 2 million tons.