From September 10 to 11, Mr. Li Xiyong, chairman of the board and secretary of party committee of Yankuang Group, paid an inspection visit to Moolarben coal mine, HVO and MTW of Yancoal Australia, made a deep exchange and raised sincere expectations.
In the early morning of September 10, after debriefing detailed report on Moolarben coal mine, Mr. Li Xiyong visited its first mining workface of Phase II underground mine and No. 4 open cut.
On 11 September, Mr. Li visited HVO and MTW previously owned by Coal & Allied. This is the first inspection visit by Yankuang senior management after delivery of the coal assets on 1 September 2017. Mr. Li expressed congratulations on successful acquisition of Coal & Allied, which was the largest M&A (called "the Monkey King Project") in the recent 5 years in coal industry.
Coal & Allied held 67.6% equity interests in HVO, 80.0% equity interests in Mt Thorley Operations, 55.6% in Warkworth Mining (hereinafter "MTW") and 36.5% in PWCS. According to JORC report, HVO mines have coal resources of 1.831 billion tons and reserves of 871 million tons. MTW mines have coal resources of 1.288 billion tons and reserves of 327 million tons, with these two mines of 3,092 employees totally and annual capacity of 36 million tons. The coal products include fine thermal coal and semi-soft coking coal, which were mainly sold to Japan, Taiwan China, Malaysis and Korea.
Upon delivery, coal resources managed by Yancoal and production capacity was significantly enhanced with coal resources of 7.924 billion tons and coal reserves of 2.108 billion tons in accordance with JORC standard and designed annual raw coal production capacity of over 80 million tons. At the same time, Yancoal Australia has become the largest independent coal producer in Australia, ranks No. 3 among all mining companies in Australia and the first majority shareholder of PWCS, which means Yancoal Australia has the power to appoint director, nominate chairman of the board and appoint general manager of PWCS.