The sale is subject to regulatory approvals from the Australian Foreign Investment Review Board and Chinese government authorities, which will be sought over the coming months.

Wesfarmers managing director Richard Goyder said that the sale of Premier Coal mine reflects the best outcome for Wesfarmers’ shareholders and the business.

The Premier Coal mine is located in Perth, Australia produces approximately 3.5 million tonnes of thermal coal annually from the Collie Coal Basin

The Western Australian state owned power generator Verve Energy and a number of domestic industrial customers receive coal supplies from Premier Coal.

Yancoal operates five mines in New South Wales and Queensland producing approximately 11 million tonnes of thermal and metallurgical coal per annum