Shougang to buy stake in Fushan

HONG KONG: Steelmaker Shougang Concord International Enterprises is buying a 12.05 percent stake in Fushan International Energy Group for HK$1.2 billion to ensure adequate coal supplies.

Shougang Concord, controlled by the Shougang Group, said the stake buy would help secure a long-term source of raw materials for its steel manufacturing operations. The steelmaker said it would pay HK$2.18 per share for the Fushan stake.

Fushan International Energy, the second-largest hard coking coal producer in China in terms of capacity, owns and operates three mines in Shanxi province with an aggregate raw coal production capacity of 6.3 million tons per annum.