china qinfa group increases its stake in tcm

interesting move and a substantial one for TCM

"China Qinfa Group increases its stake in TCM"

Level 2, 131 Macquarie Street Telephone +61 2 9251 7177
Sydney NSW 2000 Australia Facsimile +61 2 9251 7500
www.tiarocoal.com.au
ASX QINFA Second Options.DOC
21 January 2010
Company Announcement Office
Australian Securities Exchange Limited
China Qinfa Group seeking to increase its stake in Tiaro Coal
Recognising the strength of the partnership which commenced late 2009, China Qinfa Group Limited (Qinfa
Group) is seeking to increase its equity in Tiaro Coal Limited (Tiaro) from 21% to 30%. Qinfa holds its interest in
Tiaro through its wholly owned subsidiary, Bright Rock Holdings Limited (Bright Rock).
Tiaro proposes to issue Bright Rock 8 million options, exercisable at the lesser of 25 cents and the Volume
Weighted Average Price over ten business days prior to exercise.
The options will be exercisable before 31st March 2010, potentially raising $2 million.
The issue of the options (and subsequent allotment of shares) is subject to shareholder approval.
In December 2009, with shareholder approval, Qinfa Group acquired 13.4 million shares in Tiaro and
established itself as a significant shareholder & strategic partner of Tiaro.
Qinfa Group and Tiaro will continue to collaborate in three ways:
a) to support the development of Tiaros coal interests to establish a JORC compliant resource of high
quality metallurgical coal (coking & PCI) enabling the Qinfa Group to participate in coal off take of future
potential mine production;
b) to commence coal trading to develop profitable bi-lateral coal trade; and
c) to develop new coal exploration opportunities independently and with third party coal mine owners
aimed at identifying new sources of coals for the Qinfa Group.
QINFA GROUP
Established in 1996, the Qinfa Group is a leading coal operator in China whose business includes purchase and
sales, filtering, blending, storage, transportation and shipping of coal. QINFA was the largest non-state-owned
coal operator in China in terms of annual coal trading volume for the year ended 31 December 2008, The Group
has established long-term business relationship with major power plants, cement plants at China Eastern
Seaboard including Guangdong Electric Power Industry Fuel Company Limited, Huayang Electric Power Co. Ltd.
and Prosperity Conch Cement Company Limited.
Qinfa Groups business operations are strategically located in Hong Kong, Datong, Yangyuan, Qinhuangdao,
Zhuhai, Guangzhou and Inner Mongolia and they source coal both in China as well as in overseas markets.
Qinfa Group operates two coal loading stations at Datong and Yangyuan along the Daqin Railway, which is the
worlds largest coal haul railway, to Qinhuangdao port in Hebei province of China, the worlds largest coal port.
Additionally, Qinfa Group also operates two coal loading stations in Baotao City, a major coal production area in
Inner Mongolia. These two coal stations are on a major railway line linking to the Daqin Railway.
Qinfa Group has its own fleet of vessels for transportation of its coal and they also facilitate shipping services for
other customers transporting other dry bulk cargoes.
The Qinfa Group is currently constructing one 100,000 DWT (construction structure: 150,000 DWT) berth, one
20,000 DWT (construction structure: 50,000 DWT) berth and two 2,000 DWT (construction structure: 10,000
DWT) berths, with an aggregate annual throughput capacity of 20 million tonnes, at Zhuhai Terminal in Southern
PRC, expected to be completed by Year 2011.
Qinfa Group completed a global offering (Offering) of its shares on 3 July 2009 and its shares have since then
been listed on the main board of The Stock Exchange of Hong Kong Limited. The Offering was highly successful
and raised net proceeds of approximately HK$630 million (AUD$107 million), with approximately 7 times oversubscription
by professional, institutional and private investors and 98 times over-subscription by members of
public in Hong Kong.
Further information
Tiaro Coal Limited,
Peter Meers,
Chief Executive Officer
Telephone: +61 2 9251 7177