Pingmei Group acquires 60% stake in Xinjiang coal mine

Pingdingshan Tianan Coal Mining Co., Ltd. (SSE: 601666), also known as Pingmei Group, announced its acquisition of a 60% stake in Wusu Sikeshu Coal Co., Ltd. for approximately ¥656.5 million ($90.6 million USD). The acquisition is part of Pingmei's strategic expansion into Xinjiang's coal resources and aims to boost the company's operational performance. Sikeshu, a subsidiary of SPIC Xinjiang Energy Co., Ltd., operates the high-gas Bahaojing Coal Mine with an annual production capacity of 1.2 million tons. The transaction will not require shareholder approval as it does not constitute a major asset restructuring. Following the acquisition, Pingmei will hold 60% ownership, while SPIC Xinjiang Energy will retain the remaining 40%. Pingmei acknowledges potential market risks, financing challenges, and operational complexities associated with this acquisition.