CMC approved to buy Australian iron ore project
Shareholders of Perth-based Cape Lambert Iron Ore Ltd has finally approved to sell an undeveloped iron ore project to China Metallurgical Group Corporation (CMC) for A$400 million, sources reported.
The project is located in the Pilbara region of Western Australia, which is the most important mining base of iron ore in the country.
A preliminary agreement was reportedly signed by the two sides in February and the deal has won the regulatory approval from Australian authorities in May.
The final deal is expected to be settled by end-July. A$240 million will be paid as the first substantive payment to Cape Lambert, and the remaining payments to be made in the coming 60 days. MCC has already paid a deposit of A$10 million, sources revealed.
Chinese companies have been accelerating its acquisition of Australian steel companies to secure supplies so as to meet the surging demand brought by its rapid economic growth. Earlier this year, the Australian government gave Sinosteel, a major Chinese steel maker, the nod to bid for Midwest, another iron ore miner in the country.
Tags: iron-ore, Sinosteel, steel-maker