Yanzhou eyes opportunities in Australia"CHINESE miner Yanzhou is...

Yanzhou eyes opportunities in Australia

"CHINESE miner Yanzhou is on the lookout for further investments in Australia as it awaits a decision from regulators on its $3 billion takeover of Felix Resources.

The deputy managing director of local subsidiary Yancoal Australia, Boyun Xu, said the company saw growth opportunities in Australia's vast coal resources and the strong regulatory environment.

''We came to Australia five years ago and we are still looking for some opportunities,'' Mr Xu told BusinessDay last week. ''Australia is rich in coal resources and we are a miner [with] experience … And in terms of regulatory regime Australia is very stable and we are happy to do business here.''

Yanzhou's $17.95-a-share friendly cash bid for Felix is currently before the Foreign Investment Review Board, and Mr Xu said the company had not determined the budget or type of any further Australian investments.

The comments came as FIRB general manager Patrick Colmer last week said it preferred government-owned companies to keep stakes in major resources projects to 15 per cent, or 50 per cent for undeveloped sites.

A wave of resources investments has made China the third biggest foreign investor after the US and Britain, and it is expected to climb higher. Yanzhou is 53 per cent owned by Shandong Provincial People's Government, while the remainder is listed on the stock exchanges of New York, Shanghai and Hong Kong.

Mr Xu would not comment on the Felix application before the FIRB, or the likely effects of the regulator's tougher stance on investment from state-controlled companies."

http://www.theage.com.au/business/yanzhou-eyes-opportunities-in-australia-20090927-g7rm.html