15/02/2012 - 11:26

Blackgold buys Chinese barge company

15/02/2012 - 11:26


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Blackgold buys Chinese barge company

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.


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