Case Name :      Yancoal: The Saskatchewan Potash Question

Authors :           George Peng, Paul W. Beamish

Source :             Ivey Publishing

Case ID :            W13583

Discipline :        General Management

Case Length :    20 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

In 2011, a major coal producer in China – Yancoal – must make several decisions in terms of product and geographic diversification. One option is to retain its focus on the coal business. Here, it can acquire other coal assets in Australia to further increase its coal reserves. Another option is to acquire 19 potash-exploration permits in Saskatchewan, Canada. This represents an opportunity for both product diversification and further geographic diversification. Yancoal has to decide whether it should focus on the coal industry or pursue the potash opportunity as well.