China Qinfa buys into Huameiao

PUBLISHED : Friday, 19 November, 2010, 12:00am
UPDATED : Friday, 19 November, 2010, 12:00am

Coal logistics firm China Qinfa Group's share price surged 10.7 per cent to HK$4.03 after it unveiled a deal to buy a 32 per cent stake in Huameiao Energy for 1.6 billion yuan, to be half-financed by a bank loan and half by its own resources. Huameiao has three coal mines within 100 kilometres of China Qinfa's coal loading stations in Datong, Shanxi province. They will have a combined output capacity of 8 million tonnes by next year's third quarter. China Qinfa will have the right to buy at least 32 per cent of the mines' output.