Yancoal Makes Good on $953 Million Offer for Stake in Hunter Valley Operations Coal Mine
By Cecilia Connell
May 27, 2017 - Chinese-controlled company Yancoal has made a binding offer to acquire Mitsubishi Development's 32.4 percent interest in the Hunter Valley Operations mine site, north-west of Singleton.
The move fulfils Yancoal's obligation to make a tag-along offer to Mitsubishi under its agreement to purchase Rio Tinto's Hunter Valley business Coal and Allied, which was approved by the Foreign Investment Review Board last month.
The $3.2 billion Coal and Allied deal remains the largest acquisition by a Chinese Government entity of Australian assets to date.
Yancoal Australia chief executive Reinhold Schmidt said the latest offer was an important milestone.
"[It] sends a clear message to all stakeholders of Yancoal Australia's continuing investment into the local resources sector," he said.
The tag-along offer is dependent on regulatory approval.
Mitsubishi has until June 23 to accept.
Yancoal Australia, which already runs a handful of coal sites across the country, is owned by Chinese Government-controlled company Yanzhou Coal Mining.
The Coal and Allied sale incorporates a majority interest in several Upper Hunter coal mines including Mount Thorley, Warkworth and Hunter Valley Operations.