DECEMBER 27 -- Jizhong Energy Resources (000937), a Hebei-based coal mining and processing company, said wholly-controlled subsidiary, Jizhong Energy Inner Mongolia, plans to acquire a 72 percent stake in Erodos Shengxin Coal for 684 million yuan, reports China Business News, citing a company filing.

The target company has a mining area of 7.88 kilometers, and has production capacity of 600,000 tons per year. It obtained a five-year mining certificate from the authorities in Ordos, Inner Mongolia, at the end of 2008.

Erodos Shengxin Coal had total assets of 138.57 million yuan and total liabilities of 10.85 million yuan at end July, 2011, with a debt ratio of 7.83 percent.

According to the report, Shengxin Coal has a book value of 127.74 million yuan, while its net assets have an appraised value of 883.38 million yuan.

The book value of the mining rights hit 54.84 million yuan, while the land has an appraised value of 2.62 million yuan.