Datong Coal to acquire mine assets from parent company

Datong Coal Industry (SSE:601001) announced plans to acquire the Panjiayao Mine exploration rights and related assets from its indirect controlling shareholder, Jinneng Holding Group. The mine, located in Zuoyun County, Datong City, Shanxi Province, has a planned production capacity of 10 million tons per year. The acquisition aims to resolve potential conflicts of interest and is expected to be funded using Datong Coal's own funds. While the deal constitutes a related party transaction, it's not currently projected to be a major asset restructuring. The acquisition is in its early stages, with the final structure, price, and timeline yet to be determined. The company will follow necessary procedures and approvals and provide updates as the process progresses. Investors are cautioned about the inherent uncertainties involved.