Yanmei Australia renews its coal purchase agreement with POSCO

Yanzhou Coal Australia announced on December 19 that in order to renew the 2019 POSCO coal sales agreement, on December 19, 2019, the company entered into four coal sales agreements with POSCO or its affiliates, according to which POSCO or its affiliates have agreed to purchase coal from the group. As POSCO owns 20% of the equity in solishan joint venture (the company's subsidiary), which is the main shareholder of the company's subsidiary, according to the listing rules, POSCO is an associated person of the company. For the financial year ended December 31, 2020, the maximum annual transaction amount that the group will receive from POSCO or its affiliates for the sale of coal will not exceed $600 million. The company's main business activities are the production of power coal and metallurgical coal. Since at least 2006, POSCO has been one of the company's main customers, and the company is now one of POSCO's main coal suppliers. The company believes that by supplying coal to POSCO in the general and daily business process of the company, the company can maintain a good business relationship with Posco and further expand its business operation and generate revenue.