Yudean Group to take stake in Whitehaven

Power firm Guangdong Yudean Group is set to take a 7.5% stake in Australia’s Whitehaven Coal for US$63.6 million, the Wall Street Journal reported. Under the terms of the agreement, Yudean will purchase 500,000 metric tons of coal a year initially, rising to 1.5 million tons. The coal will be bought at market prices. Yudean will also contribute to the future developm3nt costs of Whitehaven’s Narrabri development project in New South Wales. Global coal prices have surged in recent weeks due to supply fears. Australia’s output has been slowed by rain, operations in South Africa have been hit by power outages and Chinese mines have suffered as a result of recent snow storms.