Hot Topic: China goes shopping abroad
Sarah-Jane Tasker | November 05, 2009
Article from The Australian
THE foreign investment review board has approved another Chinese investment in Australia's resources sector, with Centrex Metals' deal with the economic powerhouse given the green light.
It is now the sixth approval of Chinese investment in the mining sector in the past three weeks, with China Railway Resources Group's local subsidiary CREC Resources' $14.8m bid for 80 per cent of Perth's RMA Energy, also approved this week.
Centrex already has a Chinese firm on its register, with another state-owned steelmaker, Baotau Iron and Steel, holding an 8.13 per cent stake in the junior.
In August, Centrex signed a $40m deal with Baotau to jointly develop another group of South Australian magnetite iron ore assets in a deal still being decided by the FIRB.
Centrex chairman David Lindh said the WISCO deal meant the company would enter 2010 with a well funded iron ore growth strategy that under existing contracts and commitments is already a minerals export business worth around $500m in the next few years.