China's Ansteel can lift Gindalbie stakeMay 8, 2009 - 5:44PM (...

China's Ansteel can lift Gindalbie stake

May 8, 2009 - 5:44PM ( The Age Online )


Federal Treasurer Wayne Swan said he has approved the Anshan Iron and Steel Group Corporation's (Ansteel) acquisition of an additional stake in Gindalbie Metals Ltd.

Mr Swan said this foreign investment decision allowed China's Ansteel to have a stake of up to 36.28 per cent in Gindalbie, conditional upon legally enforceable undertakings by Ansteel.

Ansteel is also a 50 per cent partner in a joint venture with Gindalbie to develop the Karara Iron Ore Project - a $1.8 billion development in the midwest region of Western Australia.

"My approval under the Foreign Acquisitions and Takeovers Act 1975 is conditional upon Ansteel supporting the wider development of infrastructure in the Mid West, and maintaining agreed levels of Australian participation in a greenfields joint venture in China's Liaoning Province," Mr Swan said in a statement.

"This involves the construction of a pellet plant to process iron ore product from Karara into pellets for use in steel mill furnaces."

Mr Swan said Ansteel had agreed on a number of undertakings that would support Australian mining jobs and protect Australia's investment participation in the Chinese resources market.

"Ansteel's proposed investment will ensure that production at the Karara Project proceeds, which will underpin the development of the $3 billion Oakajee deepwater open access port - north of Geraldton - and the open access railway for this new iron ore province," he said.