BEIJING -(Dow Jones)- China's Hunan Valin Iron & Steel Group said Tuesday it welcomes the Australian government's approval of its A$1.2 billion investment in iron ore miner Fortescue Metals Group Ltd. (FMG.AU). "We were always confident we will receive approval from the Australian government, as the cooperation with Fortescue is based on international commercial disciplines," said Valin in a statement. Australian Treasurer Wayne Swan granted approval to Valin Tuesday to take a stake in Fortescue of up to 17.55%. Swan said the approval has been given subject to formal and strict undertakings relating to the Valin appointee who will sit on Fortescue's board. "The Australian Treasurer's requirements were part of our commitments when we submitted our application...We don't think this is a special arrangement," Valin added. Valin said the deal still needs approval from Chinese regulators. "Investing in Fortescue will secure our raw material supply and cut costs," it added in the statement. -Juan Chen contributed to this story; Dow Jones Newswires; 8610 6588 5848; [email protected]
FMG Price at posting:
$2.55 Sentiment: None Disclosure: Not Held
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