Chinese-controlled coal company Yancoal has unveiled a $US710 million offer for Mitsubishi’s 32.4 per cent stake in the Hunter Valley Operations (HVO) site.
The bid is a part of Mitsubishi’s “tag-along” right after Yancoal’s purchase Rio Tinto’s thermal coal division, Coal & Allied Industries, was approved by Foreign Investment Review Board in April.
If the Mitsubishi offer is accepted, Yancoal will have 100 per cent of the mine.
“[The offer] sends a clear message to all stakeholders of Yancoal Australia’s continuing investment into the local resources sector,” said Yancoal Australia chief executive Reinhold Schmidt.
“With Rio Tinto’s support, we look forward to progressing the next steps in the Coal & Allied transaction to become Australia’s largest independent coal producer.”
Mitsubishi has until June 23 to accept the deal.
Yancoal Australia, currently operating four sites across the country, is majority-owned by China’s Yanzhou Coal Mining. Yancoal’s shares are at 26.4 cent as per mid-May.