China's Yudean buys 7.5 pct of Australia coal mine

SHANGHAI, Feb 29 (Reuters) - China's Guangdong Yudean Group, one of China's top power generating groups, has agreed to buy a 7.5 percent stake in Narrabri Coal project, wholly owned by Australia's Whitehaven Coal Limited (WHC.AX), for A$67.5 million ($63.9 million), Whitehaven said.

Guangdong Yudean Group, parent of Shenzhen-listed Guangdong Electric Power Development Co (000539.SZ), will contribute a share of all future development costs of Narrabri Coal Project, Whitehaven said.

China is still recovering from its worst power shortage in decades, partly triggered by freak snow and ice storms in late January and early February that disrupted coal transportation and toppled power lines.

Yudean is facing a very severe fuel supply situation, the Web site of the China National Coal Association (www.chinacoal.org) quoted Hong Rongkun, the company's deputy general manager, as saying.

The deal also includes a coal offtake contract for 0.5 million tonnes per year, rising to 1.5 million tonnes over the life of the Narrabri project, the Whitehaven announcement said.

The deal, which has yet to be approved by the Chinese government, is expected to be completed in March, Whitehaven said. ($1=A$1.0594) (Reporting by Rujun Shen; Editing by Edmund Klamann)