China's Sinosteel in talks with Australian miners Sun Sep 28, 2008 2:27am EDT
TIANJIN, China Sept 28 (Reuters) - State-owned Sinosteel, China's largest ferrous metals trader, said on Sunday it was in talks to invest in Australian firms, including miners of manganese and nickel, but did not provide any details.
The comments come just a week after Australia gave approval to Sinosteel to buy up to a 49.9 percent stake in iron ore prospector Murchison Metals Ltd (MMX.AX: Quote, Profile, Research, Stock Buzz).
"We are talking about many projects in Australia, mostly with our partners, to invest in mines including manganese and nickel," President Huang Tianwen told reporters on the sidelines of the World Economic Forum.
As part of Chinese efforts to secure raw materials supplies to feed a booming economy, Sinosteel had previously sought permission to buy up to 100 percent of Murchison, but had withdrawn the application.
Earlier this month, Sinosteel completed a $1.3 billion takeover of Midwest Ltd (MIS.AX: Quote, Profile, Research, Stock Buzz), which is looking for iron ore in an area adjacent to Murchison.
Huang said that while the Australian government had approved its purchase of a stake in Murchison, it was not a guarantee that a deal would be completed.
"If the details of the deal are not right, we won't necessarily buy Murchison," said Huang.
The executive also said China's imported price of iron ore should remain stable as global supply and demand were now in general balance.
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