Coal miner Blackgold International has acquired a Chinese barge transport business in a deal worth approximately $23 million.
Blackgold announced today it had entered a share sale agreement to purchase Chongqig Gouping Shipping Transportation Company from the Congquing Gouping Industrial Group for RMB155 million ($A23 million).
The shipping company operates a barge transport business along China's Yangtze River, carrying coal, iron ore and sand.
Its 9-barge fleet has a total capacity of 43,000 tonnes.
Blackgold executive chairman James Tong said the acquisition was complementary to the company's existing operations.
“As a result of the acquisition of GPST, Blackgold will have capabilities and dedicated internal resources covering each link of the value chain in its coal business – from production, transportation, storage to sales and marketing,” Mr Tong said in a statement.
“This integrated business model will allow Blackgold to reduce its cost of sales and enhance its profit margin, and also meet its customers' demand in a timely and cost-efficient manner by providing a whole supply chain solution.”
At 11:20 WST Blackgold stocks were steady at 22 cents.
