DJ Yanzhou Coal: In Talks To Take Over Felix Resources27/04/2009...

DJ Yanzhou Coal: In Talks To Take Over Felix Resources27/04/2009 02:37PM AEST
HONG KONG (Dow Jones)--Yanzhou Coal Mining Co. (1171.HK) is in talks to take over Australian coal miner Felix Resources Ltd. (FLX.AU), although the coal market has been affected by the global financial crisis, Yanzhou Director Wu Yuxiang confirmed Monday.

Shandong-province based Yanzhou is also seeking several acquisitions domestically and overseas to expand its coal reserves, Wu said without elaboration.

Australia media reported in December that Hong Kong and Shanghai-listed Yanzhou Coal was in talks to buy Felix for more than A$3 billion.

Yanzhou Coal will fund the planned acquisitions through cash and bank loans, Wu told reporters at a news conference on the company's 2008 results.

Yanzhou Coal, China's third-largest coal producer by market value after China Shenhua Energy Co. and China Coal Energy Co., said Sunday its 2008 net profit doubled to CNY6.49 billion from CNY3.23 billion.


-By Yvonne Lee, Dow Jones Newswires; 852-2802-7002; [email protected]