Photo by: Bloomberg
PERTH (miningweekly.com) – Chinese State-controlled coal miner Yancoal, which trades on the Australian exchange, has remained vague about speculation that it is looking at major Rio Tinto’s Australian thermal coal assets, saying in a letter to the ASX that it “continues to review and explore a number of development and acquisition opportunities”.
The thermal coal assets include Rio’s Hunter Valley and Mount Thorley Warkworth operations, in New South Wales, and the Hail Creek and Kestrel mines, in Queensland.
Rio in August sold its Mount Pleasant thermal coal asset for $220.7-million plus royalties, and in March sold off its 40% interest in the Bengalla joint venture to New Hope Corporation for $616.7-million.
While remaining coy about its interest in Rio’s portfolio, Yancoal said in the letter on Wednesday that there could be no certainty that any of these “opportunities” would proceed.
Meanwhile, the miner has ascribed its recent share price increase to the recent strengthening in global coal prices.
The company’s shares surged from 24c each on October 12 to a high of 55c each on Tuesday at market close. Shares retreated on Wednesday, trading at 38c each at 16:00 in Sydney.