(EnergyAsia, December 16 2011, Friday) — China’s DADI Engineering Development (Group) Co Ltd has completed its acquisition of a 15.3% stake in Australia’s Metrocoal for A$24 million. (US$1=A$1).
The Australian miner said the Chinese firm has fully paid for its purchase of 32 million of its ASX-listed shares at A$0.75 each.
With Chinese regulators giving their approval for the transaction, MetroCoal said it has appointed DADI chairman Dongping Wang to its board, while DADI has appointed Robert Finch, managing director of its Australian subsidiary, Aury Australia Pty Ltd, as the alternate director to Mr Wang.
MetroCoal chairman David Barwick said:
“Finalising the placement was an exciting phase in the development of the company’s Surat Basin thermal coal projects (in Queensland state). We could not have wished for a more professional partner in DADI and we look forward to Mr Wang joining our board.’’
DADI is a major Chinese coal company offering the full range of services including open cut mine design, underground mine design, coal process plant design, coal processing research and development and engineering, procurement and construction projects. With over 2,000 employees, DADI has been involved in many significant coal projects including the completion of more than 30 open cut and underground mining projects, the design and supply of over 70 coal processing plants and three water slurry treatment plants.
In developing its fully-owned coal projects in the Surat Basin in south eastern Queensland, MetroCoal has a vision to build a substantial business based on exporting thermal coal from underground and open cut mining operations.