march 25 (bloomberg) -- arafura resources ltd.

Copper Projects
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By Helen Yuan

March 25 (Bloomberg) -- Arafura Resources Ltd., building a rare-earth plant in Australia, may seek to acquire copper projects after securing an investment from a Chinese government- backed company this month.

Arafura and the mining investment arm of the Jiangsu provincial government are seeking approval from Australia’s Foreign Investment Review Board for the deal, Alistair Stephens, Arafura’s managing director, said today.

The East China Exploration and Development Bureau plans to buy a 25 percent stake in Arafura for A$24 million ($17 million). Australian mining companies are increasingly seeking funding from China as banks become reluctant to lend and shares sale are harder amid the global credit crunch.

The Chinese company has a “a project acquisition philosophy around, potentially in copper projects,” Stephens said while attending an industry conference in Singapore. Both companies will also seek to explore for iron ore, he said.

An approval from the review board “won’t be far away,” Stephens said.

The Chinese bureau, with 22 mining projects in China, will ensure Arafura has the cash to move ahead with its Nolan rare earths-phosphate and uranium project in Northern Territory, Arafura said March 12.

To contact the reporter on this story: Helen Yuan in Singapore at [email protected]

Last Updated: March 25, 2009 05:02 EDT