Kiu Hung International Holdings Limited (HKEx: 381) held an extraordinary general meeting and approved the acquisition of the entire equity interest of Lucky Dragon Resources Limited with a total consideration of HK$840 million (subject to adjustments).

Lucky Dragon owns the entire equity interest in Tongliao City Heng Yuan Mining Company Limited (”Heng Yuan”) which in turn owns (i) the mining rights and operation facilities of the Huanghuashan Coal Mine and (ii) the exploration rights of the Bayanhushuo Coalfield.

Huanghuashan Coal Mine is located in Tongliao City of Inner Mongolia of the PRC. Heng Yuan owns the mining license (certificate no.1500000720617) and related operating facilities of the coal mine. According to a technical report compiled by SRK Consulting China Limited (”SRK Consulting”), Huanghuashan Coal Mine has estimated coal reserves of approximately 7.85 million tons in a site area of 1.71 km2. The coal type of Huanghuashan Coal Mine is semi-anthracite coal and the current at-pit market prices of the coal are approximately RMB250-260 per ton (pre-washing) and RMB550-560 per ton (post-washing). It is estimated that the unit production cash cost of the coal mine will be approximately RMB77 per ton of coal (include the cost of coal washing).

FIND MORE NEWS IN : Kiu Hung International Acquires Two Coal Mines