Jervois will be next on the list when new management is elected...

Jervois will be next on the list when new management is elected at the EGM. Very interesting article in the Australian.


Article from: The Australian

Chinese Get Resources Green Light

Sarah-Jane Tasker
February 09, 2009

THE march of the Chinese into Australia's resource space has intensified.

Significant deals have been given the green light and mining giant Rio Tinto has confirmed it is in strategic talks with a Chinese major.

With struggling miners seeking financial aid from China to survive the global downturn, the economic powerhouse has the luxury of picking through quality assets to gain a firm hold over long-term supply of a range of commodities.

Debate on Chinese interest in Australia's miners gained momentum last week when it was revealed that Rio Tinto and Chinalco were in talks about a potential $US20billion ($33 billion) deal that would give China stakes in Australia's largest iron ore operations and key aluminium projects.

Highlighting how intent it is upon securing a deal, Chinalco has hired the services of Labor Party-connected lobbying firm Hawker Britton as it targets up to a 20 per cent stake in the dual-listed miner.

Ian McCubbin, leader of Deacon's China Group in Australia, said China was eyeing quality assets that were not available six months ago.

"China is taking a long-term view and is saying that at least over the next 12 months this is going to be as good an opportunity as it gets to acquire quality assets in the foreseeable future," he said.

Mr McCubbin said that while greater scrutiny would be placed on spending, China was still in a position to fund many projects in Australia.

"We will see Chinese investment across a broader range of assets," he said.

NSW zinc and lead producer Perilya has handed over control of its operations to China's Zhongjin Lingnan, which paid $45.5 million for a 50.1 per cent interest in the struggling miner.

The Chinese company gained shareholder and Foreign Investment Review Board approval last week. It was the first major decision by FIRB relating to a controlling stake in an Australian miner since the start of the global credit crisis.

Chinese enterprises are also understood to have sought approval from FIRB for an interest in some of the assets being offered up by OZ Minerals.

It is expected the diversified miner's list of asset sales could set the agenda for Chinese interest, with its February 27 refinance deadline looming.

"It will be interesting to see what happens with the OZ assets and what the Chinese do. This will be a test, given the number of assets for sale," one analyst said.

Gindalbie Metals was given the green light last week to accept a $162.1 million boost from AnSteel, China's second-largest steelmaker. The move increased AnSteel's stake in the company from 12.6 per cent to 36.28 per cent.

Mr McCubbin said major Chinese players were looking at significant Australian resource assets.

"It is not a case of coming in and looking at distressed assets," he said.

"It is being driven by quality assets and, in some cases, it will be a share placement where a pre-existing relationship already exists."