MC Mining Limited (LON:MCM) has renewed its co-operation agreement with a subsidiary of China’s Beijing Haohua Energy Resource Co.
It supersedes a now-lapsed deal inked in 2013, which required Haohua to maintain a 19.9% stake in the UK group.
Going forward Haohua will keep its stake at or above 5.4%. Shangren Ding will remain on MC’s board as the Chinese firm’s nominee.
Haohua washes, processes and sells coal in China, the biggest single market for the commodity.
Therefore its connections and expertise will undoubtedly benefit MC, which is developing a coking coal mine in South Africa.
Haohua has promised to use its “best endeavours” to arrange much-needed funding for the operation.
This latest announcement follows hard on the heels of an update which revealed MC had agreed an off-take deal with ArcelorMittal, one of the world’s largest steel producers.