Henan Shen Huo Coal Industry is planning to acquire a 51% interest in Zhengzhou Yuzhong Coal for CNY610m ($96.9m).

Zhengzhou Yuzhong Coal has four subsidiaries which controls seven coal mines with total reserves of 488m tons and recoverable reserves of 203m tonnes.

The seven mines were estimated to be worth of CNY2.93bn ($465.5m), reports China Securities Journal.

Shen Huo Coal said the proposed acquisition will greatly increase its reserves and improve its competitiveness.

Henan Shen Huo Coal Industry and Electricity Power is a producer of coal, aluminum products and electricity.