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Thursday, 26 January 2017 14:26

China’s Australia Coal Deal Boosts Link to Fuel-Hungry World

China isn’t just buying Australia’s coal assets, it’s also expanding access to the limited infrastructure needed to ship it globally.

Yancoal Australia Ltd.’s $2.45 billion purchase of the biggest slice of Rio Tinto Group’s coal operations will double the Chinese-owned miner’s output in the country. The deal also includes a 36.5 percent stake in Port Waratah Coal Services Ltd., the owner of two terminals at the port of Newcastle, Australia’s main conduit for thermal coal. The amount Yancoal will be permitted to ship will double.

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