Vimetco Buys Coal Mine in China for $31.2 Mln

Dutch aluminum producer Vimetco N.V. has bought the Yaoling coalmine in Henan Province, China.

Vimetco acquired the mine "through its subsidiary company Henan Yulian for a consideration of 213 million yuan [$31.2 million]. The purchase has been completed through a joint venture with Yongcheng Coal and Electricity Co., the current mine operator, and the Gongyi city government. The partnership has acquired a 65% stake in the asset," the company said in a statement on Monday.

"The acquisition of the Yaoling mine ensures mining rights for 33 years until 2041," it reads. The company's total production was 580,000 tonnes in 2007.

It was reported earlier that Vimetco raised $250 million to expand its activities in Asia. The loan taken from Vi Holding N.V. will allow the expansion of production facilities in China by 90%. This will also allow the production of aluminum of higher quality at works which are expected to be built in China in the next ten months. The loan is to be paid back by May 31, 2013.

According to unofficial information, Russian businessman Vitaly Machitsky controls Vimetco.

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