Yancoal countered a report made by The Australian yesterday that claimed FIRB had rejected Yanzhou’s proposal to fully acquire Australia-listed Yancoal and must consequently sell an 8% of Yancoal within the next six weeks.
“FIRB is not a decision making body but makes recommendations to the Australian treasurer or his delegate in relation to foreign investment proposals, with the treasurer or his delegate making the ultimate decision,” Yancoal said.
A Yancoal spokesman further told ILN there was “no indication from Yanzhou as to where those discussions are at”
He confirmed that FIRB was required to review and make a recommendation on Yanzhou’s proposal and it would be followed by an Australian Treasury Department decision.
Yancoal was the name given to Felix Resources following Yanzhou’s takeover of the Australian coal producer, which received federal government approval in 2009.
As part of the approval Yanzhou was required to list Yancoal and sell down to a 70% stake by the end of 2012, with Yanzhou given a time extension to do this by the end of 2013 after Yancoal merged with Australia-listed Gloucester Coal last year.
Yanzhou has a 78% stake of Yancoal, which operates the Austar, Ashton, Donaldson, Duralie, Stratford and Moolarben coal operations in New South Wales, plus the Yarrabee and Cameby Downs mines in Queensland, with the Middlemount operation in Queensland being a partnership with Peabody Energy.
