Australia's Crest Mining to acquire 17% of Chinese coal mine

Australia's Crest Mining said it had won a 17% stake investment in a Chinese coal mine in northern China's Inner Mongolia province.

The move is the first investment by an Australian company in Inner Mongolia. The two parties have signed an agreement at a Beijing event promoting Australian trade, which aims to display Australian companies during the Beijing Olympics. More than 40 Australian companies have won over 50 Beijing Olympics-related contracts, according to sources.

The Yihe mine has resources estimated at over 800 million tons of thermal coal. It can produce 5 million tons of coal per year, which is delivered to both local and foreign markets.

China plans to increase the annual coal output in Inner Mongolia to 500 million tons by 2010.