Yanzhou Coal Will Pay $682M For Stake In Mongolian Firm

Yanzhou Coal

, China's fourth-largest coal miner, said it will pay $682 million in an effort to acquire 51% of Inner Mongolia Haosheng Coal Mining. Yanzhou is looking to bolster reserves as Chinese coal consumption continues to surge. Yanzhou will pay $682.1 million to two sellers for a 35.5 percent stake in the developer of the Shilawusu coal field, and seek to buy a further 15.5 percent through an open bidding process, according to Bloomberg News. Haosheng Coal Mining isn't profitable, but Yanzhou believes the company “possesses the potential to create steady and large revenue in the future, which is of great importance in increasing the backup resources reserve and for sustainable development of the company." Yanzhou's last major acquisition was the $3 billion purchase of Australia's Felix Resources.