Chinese-owned Yancoal Australia is planning to ask Australian regulators to waive some of the promises it made at the time of its 2009 purchase of local coal mines, according to a report.
Yancoal will lobby the Foreign Investment Review Board to delay or avoid altogether having to lower the level of its interest in coal mines in New South Wales and Queensland, blaming weakening economic conditions, the Australian Financial Review reports.
The company originally promised to float at least 30 per cent of the company on the Australian Securities Exchange by 2012 as a condition of its $3.5 billion purchase of Felix Resources.
Last month, Yancoal entered into a merger proposal with listed Gloucester Coal, capitalising on the two mining companies neighbouring assets. Gloucester, which has mines in NSW's Gloucester Basin and Queensland's Bowen Basin region, is 64 per cent owned by Hong Kong-based Noble Group, while Yancoal is owned by China-based Yanzhou Coal Mining Co Ltd.
SMH
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