According to an inside source who spoke to China Coal Resource, the new group is targeting production capacity of 100 million tonnes by 2010.
The source said the large coal enterprise would be made up of Yanzhou, Zino Mining, Zaozhuang Coal Mining, Xinwen Mining, Feicheng Coal Mining, Longkou Mineral Group and Linyi Mining.
Yanzhou is the biggest of these Chinese coal producers. In Australia, it owns the Austar longwall mine near Cessnock in New South Wales and its acquisition of Felix Resources is expected to be completed by late December.
Felix shareholders will vote on Yanzhou’s takeover offer on December 8.
