Yancoal, a wholly owned subsidiary of Chinese company Yanzhou, finalised the sale of the Premier coal mine from Wesfarmers on December 31, after Wesfarmers confirmed it would sell the mine in September.

Yancoal executives visited the mine in Collie last week and managing director Murray Bailey told the Collie Mail it had the resources to up production at the mine.

“We have the capacity to increase production; we have the reserves, expertise and capability,” Bailey was quoted as saying.

While it is unknown when increasing production would take place, Bailey said he hoped the action would result in more job opportunities becoming available at the mine.

The Premier mine, located approximately 200km south of Perth, produces about 3.5 million tonnes of thermal coal each year.

Bailey said the company had not “locked out” the possibility of exporting coal from the mine.

“A key consideration will be the state government, we would have to make a state agreement to export,” he told the Collie Mail.

The mine mainly supplies coal to state-owned power generator Verve Energy.

Premier Colin Barnett had previously expressed his concerns about the foreign interest in the state’s energy, saying the coal belonged to the state.

"We will certainly make sure that the security of coal supply to Verve and private customers is maintained,”The Australian quoted him as saying.

Yancoal’s purchase of the Premier mine is the latest in a string of acquisitions by the company.

Other purchases include Syntech Resources for $202.5 million last year and Felix Resources for $3.1 billion in 2009.

ILN tried contacting Yancoal for further comment but the company did not respond before deadline.