MC Mining refreshes cooperation agreement with Haohua Energy

MC Mining announced the signing of a cooperation agreement with Haohua Energy International Hong Kong (HEI) on Friday, which is a wholly-owned subsidiary of Shanghai-listed Beijing Haohua Energy Resource Company, the largest exporter of anthracite coal from China.

The AIM-traded firm said the original cooperation agreement between the parties was signed in 2013.

However, the board said the introduction of new shareholders during the last six years resulted in HEI not maintaining the required 19.9% shareholding in MC Mining, with the agreement subsequently lapsing.

The revised 2019 cooperation agreement reportedly aligned HEI's threshold with other substantial shareholders eligible to have a board seat, with the company needing to maintain an interest of at least 5.4% to have the right to nominate a potential director to the MC Mining board.

Shangren Ding is HEI's current representative, and would remain on the board as their nominee.

“MC Mining believes it is important to maintain the relationship with HEI in order to benefit from their substantial knowledge, and the cooperation agreement facilitates a long-term mutually beneficial strategic partnership,” the board said in its statement.

“The agreement includes details on the commercial, technical, financial and operational issues pursuant to which MC Mining will be able to draw on HEI's technical expertise.

“Furthermore, HEI will assist and use its best endeavours to arrange further funding in the development of the MC Mining's substantial coking coal assets.”