Monday 21st of April 2014

he should listen to himself making no business sense...

lacking business sense...

Federal Treasurer Joe Hockey has scrapped a set of foreign ownership conditions stopping the Chinese company Yanzhou from taking full ownership of an Australian coal miner.

The move comes less than two weeks after Mr Hockey rejected US firm Archer Daniels Midland's $3.4 billion takeover bid for GrainCorp, saying the deal raised national interest concerns.

Under conditions set by the previous government in 2009, Yanzhou was required to reduce its stake in Yancoal to 70 per cent by the end of this year.

However, in July this year Yanzhou announce plans to take 100 per cent control of Yancoal and remove it from the Australian share market.


Yancoal's share price jumped after the announcement, and was trading 2.3 per cent higher at 67 cents before being placed into a trading halt.

The company is expected to make an announcement on its future before Friday morning.

It has a market value of just above $666 million.

Yancoal's share price has dropped significantly since the company debuted on the share market in June last year.

In his statement, Mr Hockey says the ownership conditions set in 2009 provided Yanzhou with seek approval to change Yancoal's ownership structure if they were "impacted by changes in economic conditions or other factors".

"Since those conditions were imposed, significant challenges have emerged for the Australian coal industry, including slowing demand, declining coal prices and a number of mine closures."

Mr Hockey has also lifted conditions requiring Yanzhou to reduce its holdings in Felix Resources to less than 50 per cent by the end of the year, and to reduce its interest in the Syntech Resources and Premier Coal mines to less than 70 per cent by the end of next year.

more holes in the head and in the butt...

Any economist with a dash of common sense would see that conditions are not right for digging more holes... But this is where this country is about: more holes...