Chinese mining company Yanzhou will now be able to have 100 per cent control over Australian coal mine Yancoal, after Federal Treasurer Joe Hockey removed foreign ownership conditions that prevented the move.
Yancoal, with a market value of $666 million, has ten mines in several Australian states, with Yanzhou holding a 78 per cent stake.
Mr Hockey says the Government will not oppose the Chinese company having full ownership.
“In commitments provided to me, Yanzhou has undertaken to continue to support Yancoal’s ongoing operations in Australia, thereby maintaining its position as a major regional employer,” Mr Hockey said in statement, according to the ABC.
“So long as Yanzhou continues to own at least 51 per cent of the shares of Yancoal, Yanzhou will ensure Yancoal continues to operate so that it remains solvent.
“In addition, Yanzhou will extend its existing loans to Yancoal if required, and will support Yancoal’s plans to expand the Moolarben open cut mine.”
Two weeks ago the Treasurer refused US firm Archer Daniels Midland’s $3.4 billion bid to own GrainCorp, saying it was against the national interest. Yancoal is expected to make a statement by the end of the week.