SEOUL, KOREA - LG International has purchased a stake in a Chinese coal trading company Tangshan Caofeidian while at the same time winning the right to use railroad and port logistic bases. The Inner Mongolia-based Wantugo bituminous coal mine for which the trading company owns a 30-percent stake produces an annual average of 5 million tons of coal.

 

The Korean general trading company said on July 14 that it has acquired a 1.5-percent stake in Tangshan Caofeidian at 6.5 million yuan (US$1.06 million), the company located in the coastal Caofeidian District in Hebei Province. It is a subsidiary of the state-run Kailuan Group. LG International has been working closely with the Kailuan Group since April last year when it signed a partnership agreement with the coal company.

 

Thanks to the equity investment, LG International will be able to transport coal produced in Inner Mongolia to the port through Tangshan Caofeidian-owned railway, in addition to the right to use the latter's logistics facilities in the Caofeidian port.