Chinese coal miner eyes Australia's Felix Resources

08 December 2008

China's fourth-biggest coal miner, Yanzhou Coal Mining Co, is reported to be in talks with Australian coal miner Felix Resources in a takeover bid valued at approximately $3 billion in order to enhance its supplies at a time when market value of many coal miners have declined due to the global economic slowdown.

Felix confirmed to the Australian Stock Exchange, that a suitor was interested in a takeover but did not name Yanzhou as the interested party.

Reacting to media reports, "Felix confirms that there is ongoing interest in a potential change of control transaction, all indications of interest remain incomplete, non-binding and subject to completion of due diligence and other conditions," the Australian miner said in a statement.

According to Australian media reports, executives of Yanzhou had visited and inspected Ashton, the coal mine in Hunter Valley of NSW state of Felix Resourses last Thursday and also conducted a review of the company's account.

Yanzhou already has a presence in Australia since 2004, when it acquired the Southland mine in NSW for about $30 million.

American Metals and Coal International, a mining investment company, took 19.2-per cent stake in Felix for A$188 million in 2007.