Australian coal-based energy firm MetroCoal has increased its stake in Cape Alumina from 46.04% to 57.22%.

As per the offer made on 18 March 2014, the company has purchased 27,136,354 shares of Cape Alumina for 0.6 cents per share.

MetroCoal is seeking to review Capes operations and merge the administrative operations of both the entities to eliminate duplication of tasks.

The company will soon discuss with Cape’s management to engage with Queensland Government to ensure that the Bauxite Hills project will be developed in compliance with the Cape York Regional Plan, and use its excess cash to fund and accelerate the development of Bauxite Hills project.

Additionally, MetroCoal intends to gain full control of Cape Alumina to strengthen its asset base and risk profile which will provide it with a stronger near term (bauxite) and long term (coal) project pipeline.

The acquisition is a part of the company’s strategy to provide its shareholders to the diversified bulk commodities of bauxite and thermal coal.

Earlier this month, MetroCoal announced that it will not increase the bid price during the term of its on-market bid for Cape Alumina. In March, the company raised its stake in Cape Alumina from 6.87% to 46.04%.