For undervalued coal explorer like REY with +500 MT maiden...

For undervalued coal explorer like REY with +500 MT maiden resource with multi billion tonne potential, it's only a matter of time... As 80% of power generated in China comes from coal, I am sure they are looking ahead to lock in future supplies.

http://news.smh.com.au/breaking-news-business/china-firms-target-resources-companies-20090908-ffa3.html

Chinese state-owned firms are still eyeing off Australian resources companies for strategic investments.

Western Australian iron ore junior FerrAus Ltd announced on Wednesday it had plans to sell 12 per cent of the company to China Railway Materials (CRM) for about $12.6 million.

It also emerged that China state-owned energy group CGNPC Uranium Resources Co Ltd (URC) hopes acquire up to 70 per cent of Perth-based uranium explorer Energy Metals Ltd.

The bid values Energy Metals at $119.46 million.

In a separate deal, CRM will also make a $27.2 million equity investment in WA-based iron ore and bauxite explorer United Minerals Corporation NL (UMC).

That agreement would involve the two parties entering into a long term iron ore offtake agreement covering three million tonnes of ore per annum for 10 years.

Last month, Chinese state-owned steel giant Baosteel invested up to $285.6 million in Perth-based Aquila Resources Ltd.

It is understood Chinese companies are seeking to invest in Australia's iron ore industry ahead of a proposed $US116 billion ($A135.64 billion) iron ore joint venture in the Pilbara between BHP Billiton Ltd and Rio Tinto Ltd.

There are fears the joint venture could give the resource giants too much power in setting iron ore prices.

Managing director of iron ore junior miner Atlas Iron Ltd, David Flanagan, said he stopped counting the number of Chinese investment delegations visiting his company after it reached about 150.

"If you are an iron ore company, have iron in your name, or mention iron in any one of your announcements, you can guarantee that a Chinese group has been in the door and talked about investment," Mr Flanagan said.