Chinese steelmaker, Shougang Concord International Enterprises, is buying a 12.05 percent stake in Fushan International Energy Group for HK$2.18 pper share at a cost of HK$1.2 billion to ensure adequate coal supplies.
Shougang Concord, controlled by the Shougang Group, said the purchase would help secure a long-term source of raw materials for its steel manufacturing operations.
Fushan International Energy is the second-largest hard coking coal producer in China in terms of capacity and operates three mines in Shanxi province with an aggregate raw coal production capacity of 6.3 million tons per annum.
Chinese steelmakers have in the past attempted to acquire stakes in coal producers and other miners. Shougang bought a stake in Australian iron-ore miner Mount Gibson last year.
Source: China Daily
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