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East China's Largest Coal Producer to Raise Capital
Yanzhou Coal Mining Company Ltd, the largest coal producer in east China, is expected to issue an additional 100 million A shares to purchase the nation's largest coal mine -- Jining-3 in Shangdong Province.
The shares will be issued on January 3 on the Shanghai Stock Exchange. Forty percent of the shares will be placed with institutional investors and the rest with individual investors.
"The company planned to raise one billion yuan. The raised funds will go towards the US$310 million mine purchase deal to be finalized on January 1," analysts said.
The rest will be paid by the company's retained cash and bank loans.
According to Yang Deyu, general manager of the company, the Jining-3 coal mine boasts an annual production capacity of five million tons of coal. It is expected to register a profit of 200 million yuan in 2002 and 300 million yuan in 2003.
"The coal mine has the lowest production cost in the world and will greatly hone our company's competitive edge," Yang said.
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