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Australia Approves Wuhan Iron & Steel Investment
Chinese steel giant Wuhan Iron & Steel (Group) Corp (WISCO) received approval from Australia's Foreign Investment Review Board on November 4 to take 15% stake in Australia's Centrex Metals Ltd (ASX:CXM), reports China Business News.
Centrex Metals plans to issue A$10.1 million in additional shares, valued at A$0.25 each, to WISCO; WISCO will become Centrex Metals' second largest shareholder and hold a position on the company's board following the transaction, said the report.
WISCO also intends to pay an additional A$216 million for 60% stake in five Centrex Metals resource sites with a total of 2 billion tons of ore; WISCO and Centrex Metals will form a 60/40 joint venture to explore and operate resource sites; and the parties will create 50/50 joint venture to develop a deep sea port at South Australia's Sheep Hill, the report said.
China's National Development and Reform Commission approved the deal in September.
WISCO intends to invest in ore in overseas locations including Australia, Cambodia and Africa, said company General Manager Deng Qilin.
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