Yankuang Energy (01171.HK) announced that it is planning a strategic cooperation with a listed company in Australia, Highland Resources. The company intends to exchange assets (i.e. 100% equity of Yancoal Canada) for new shares of Highland Resources, and invest no more than $90 million to subscribe for newly issued shares. After the transaction, the company will become the largest shareholder of Highland Resources and obtain control.

Highland Resources' main business is the development of potash fertilizer projects. Its core project is a potash salt mine under construction in northern Spain, which has reserves of approximately 0.28 billion tons of potash salt resources. If the proposed transaction is successfully implemented, it will help the company obtain high-quality potash resources, accelerate resource development, and reduce the operating risks of Yancoal Canada.