China coal giant awaits Rio Tinto's response to Glencore's rival offer

Hong Kong

CHINA'S Yanzhou Coal Mining Co is holding fire on a counter-offer for Rio Tinto Group's Australian coal assets as it waits to hear whether Glencore Plc has succeeded in trumping the deal it struck six months ago.

Glencore chief executive officer Ivan Glasenberg has submitted a proposal to buy Rio's Coal & Allied unit in New South Wales for at least US$2.55 billion, the Switzerland-based producer and trader said on Friday in a statement. Yanzhou's Yancoal Australia unit in January offered US$2.45 billion for the business, including an initial US$1.95 billion cash payment and US$500 million in annual instalments of US$100 million following completion.