Jan. 27 -- Yankuang Group, the parent of China's third-largest coal producer, Yanzhou Coal Mining Co Ltd<600188><0171><YZC>, has secured regulatory approval from Australia's Foreign Investment Review Board for its joint venture with Bauxite Resources in Australia, said Wang Xin, general manager of Yankuang Group.
The two sides have signed an agreement for the joint development and ownership of an alumina refinery in the southwest of Western Australia. Under the terms of the agreement, Yankuang will contribute 75% of the costs of the proposed alumina refinery to earn a 50% interest in the profits. BRL will receive a 25% free carried interest and will fund a further 25% to bring its interest up to 50%.
The approval marks a major breakthrough in the group's capital operation strategy, which will help complete Yankuang's aluminum industry chain, said Wang.
Last month, Yanzhou Group announced that its listed unit Yanzhou Coal Mining successfully took over Australia-listed Felix Resources, making Felix a wholly-owned subsidiary of Yanzhou Coal.
In 2009, Yankuang Group reaped more than RMB 40 billion in sales revenue and RMB 2.5 billion in net profit. The company expects to boost its sales revenue and net profit this year to RMB 55 billion and RMB 6 billion, respectively.