Coal giant in merger

GLOUCESTER Coal has merged with the Chinese-owned Yancoal Australia.

Today the miner will stop trading as Gloucester Coal on the Australian share market.

 

It will be replaced by Yancoal Australia from tomorrow.

 

Yancoal’s parent company Yanzhou Coal - China’s fourth-largest coal miner - will control 78 per cent of the new entity.

 

Talks between Gloucester Coal and Yanzhou began back in December last year.

 

The Supreme Court of Victoria approved the proposed merger between Gloucester Coal and Yancoal Australia last Wednesday.

 

The new entity will own 11 thermal and coking coal mines, both underground and open cut, mostly in NSW and Queensland and all but one of which is already operating.

 

The merger coincides with plans to extend both the Duralie and Stratford mines.

 

Gloucester Basin mines general manager Mike Smith said it was hoped approval for new mining projects at the two sites would occur in the next 18 months.

 

Gloucester Coal began mining at Stratford in 1995 and Duralie in 2003.

 

The merger is expected to be wholly finalised by July 6.

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Gloucester Advocate