Coal miner MC Mining has signed a cooperation agreement with Haohua Energy International (HEI), a wholly owned subsidiary of Shanghai-listed Beijing Haohua Energy Resource Company, which is the largest exporter of anthracite coal from China.
The parties had initially entered into a cooperation agreement in 2013, but the introduction of new shareholders during the last six years had resulted in HEI not maintaining the required 19.9% shareholding in MC Mining and the agreement subsequently lapsed.
The revised cooperation agreement aligned HEI’s threshold with that of other substantial shareholders that are eligible to have a board seat.
HEI will need to maintain an interest of at least 5.4% in MC Mining to have the right to nominate a potential director to the coal miner's board. HEI's current representative, Shangren Ding, will remain on the MC Mining board.
"MC Mining believes it is important to maintain the relationship with HEI in order to benefit from their substantial knowledge, and the cooperation agreement facilitates a long-term mutually beneficial strategic partnership.
"The agreement includes details on the commercial, technical, financial and operational issues pursuant to which MC Mining will be able to draw on HEI's technical expertise. Furthermore, HEI will assist and use its best endeavours to arrange further funding in the development of the MC Mining's substantial coking coal assets," MC Mining said in a statement on Friday.