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Yancoal Australia acquires Hunter Valley coal mine stake

The acquisition is the result of Yancoal exercising a call option in September 2017.
woman on site at a open cut coal mine
Rio Tinto last year exited the thermal coal sector after 24 years as a dominant player

Yancoal Australia Ltd (ASX:YAL) has completed the 28.89% acquisition of a stake in the Warkworth joint venture for US$230 million.

This boosts the China-backed Yancoal’s position in the Hunter Valley coal mining region of New South Wales.

The acquisition of the stake from Mitsubishi Development Pty Ltd is a result of Yancoal exercising a call option outlined in September 2017.

Boosts total stake to 84% in Warkworth joint venture

Yancoal now owns 84.47% of the Warkworth joint venture.

This will increase Yancoal’s share of coal production from the integrated Mount Thorley Warkworth operations from 64.1% to 82.9%.

Rio Tinto exited the Hunter Valley in 2017

Rio Tinto departed the Hunter Valley and the thermal coal sector in September last year after Yancoal agreed to buy its Coal & Allied operations for $US2.69 billion.

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