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Coal miner Yancoal has applied for a dual listing on the Hong Kong Stock Exchange to increase liquidity in its shares and diversify its investor base.

The company – which says it remains committed to its listing on the ASX – also plans a capital raising, but did not give details.

Yancoal chief executive Reinhold Schmidt says the moves will help strengthen the group following its $US2.69 billion ($3.63 billion) acquisition of Coal & Allied from Rio Tinto last year.

Yancoal raised $3.1 billion from investors last year to fund the acquisition after beating commodities giant Glencore in a bidding war.

Chairman Baocai Zhang said the company is taking the next step following the Coal & Allied acquisition, which elevated the group as Australia’s largest pure-play coal producer.

Yancoal operates five mines and manages another five across NSW, Queensland and Western Australia and has a 50 per cent stake in the Middlemount coal mine in Queensland.

“The Hong Kong Stock Exchange is one of the leading global stock markets with impressive access to a diversified and stable investor base from both local and overseas investment communities,” Mr Zhang said in a statement.

Yancoal’s biggest shareholder, Shanghai-listed coal giant Yanzhou Coal, plans to back the proposed 35 for 1 share consolidation.

The share consolidation will require shareholder approval at a meeting, which is expected to be held in September.

Yanzhou is connected to China’s Shandong Provincial government through Shandong’s 70 per cent controlling stake in Yanzhou’s majority owner, Yankuang Group.