Increasingly it points to an offer by Yanzhou Coal for a 9% stake, combined with a guaranteed purchase of 2 million tonnes per annum of semi-soft coking coal for the life of the Ashton mine. The Ashton mine has a resource of 452 million tonnes. The cost of such a transaction could be in the region of AU$50 - AU$60 million.
The Moolarben underground mines also have semi-soft coking coal and a resource of 300 million tonnes. This mine should be producing by October 2011. Yanzhou may be interested in a stake of 10% in Moolarben combined with a guaranteed purchase of 2 million tonnes per annum of semi-soft coking coal for the 25 year life of the mine. Yanzhou may pay AU$130 million (including $40 million for mine development).
If this happens it will be Australia's longest and largest term coal mining agreement.
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