for your eyes only., page-12

This will be a great talking point when the Chinese sign the deal?. A bit of mining history, murder, racism and the White Australian Policy. I'm sure the NSW & Federal Govt must love this sort of publicity to promote foreign investment in Australia. This was syndicated to Asian news sites. Shameful journalism. Is it any wonder China are cautious to invest in Australia! Thought HC's might be interested, if not just ignore, or post your views.


From The Australian today.

NEARLY 150 years after white miners attacked their Chinese counterparts at Young in southwest NSW, cashed-up Chinese companies are set to return to the region and take control of one of Australia's biggest untapped nickel deposits.
Yesterday Melbourne-based Jervois Mining announced it had entered agreements with China Railway Group and Yunnan Jiaming Technology to advance its Young Nickel Project, which has a JORC resource of 1.2 million tonnes of contained nickel. That is worth about $27 billion at today's prices and provides for an estimated mining life of around 24 years, based on a mining rate of 50,000 tonnes per annum.
Jervois managing director Duncan Pursell could not be contacted for comment.
Young, formerly known as Lambing Flat, was the site of furious battles between European and Chinese miners during the gold rush in the early 1860s, which led to the NSW government introducing the Chinese Immigration Restriction and Regulation Act, a precursor to the White Australia Policy.
The announcement that China Railway and Jiaming are the latest suitors for Young comes after a long list of failed partnerships for Jervois, which has a market capitalisation of $57.8 million. Jervois has always maintained it needed to find a suitable partner for Young given the potential size of the project and the tricky metallurgical conditions of the deposit.
China Railway is one of China's biggest industrial groups with a planned expenditure of $2.7 billion in 2008.
Chairman Shi Dahua told foreign media yesterday that the mining business, which has an interest in 50 projects, would become China Railway's new growth engine.
Jiaming had been a preferred partner for Jervois for its nickel leaching technology and its proven success in operating both nickel leaching and ferro-nickel smelting pilot plants.
China Railway and Jiaming both need Foreign Investment Review Board approval to join with Jervois, which plans to issue a combined China Railway/Jiaming 19.9 per cent of the company at a share price of 2c.
Based on an initial frame agreement, the two Chinese entities could earn up to 80 per cent of a proposed joint-venture company that includes all three parties, should the partners build and operate a nickel laterite plant producing 50,000 tonnes annually. The Australian nickel laterite industry has been littered with failures but was recently buoyed by the successful commissioning of BHP Billiton's $2.1 billion Ravensthorpe project in southeast Western Australia.
Jervois has an option to fund its 30 per cent share of the final project, but can elect to maintain a free-carried 20 per cent interest in the project and let China Railway contribute the whole amount. Jiaming would contribute its patented technology.
Both Chinese companies have agreed to invest an initial $45 million in the venture to build a 3000 tonne a year pilot plant.
Jervois gained 0.5c to 2.7c.