FIRB approves Chinese stake in Centrex
November 4, 2009
Centrex Metals Limited (CXM) said that the Foreign Investment Review Board (FIRB) had given the green light for Wuhan Iron & Steel (WISCO) to take a 60% stake in iron ore rights in five of Centrex’s iron mineral tenements in South Australia. Under the deal, WISCO would pay $186 million for the rights to the tenements, as well as 15% of the issued equity in the Aussie miner.
The two companies would also partner a Joint Venture iron project in South Australia.
The Joint Venture was aimed at accelerating an exploration and study program designed to develop two 5Mtpa magnetite concentrate operations over the next five to seven years.
Centrex Chairman, David Lindh, said today the approvals marked a significant milestone for Centrex.
“The Company is now well positioned to develop a series of significant iron ore mining operations on Eyre Peninsula and in doing so become a major player in Australia’s iron ore industry,” Mr Lindh said.
WISCO is ranked third in its sector in China, with a current annual capacity of 30 million tonnes of steel.
At the close of business Wednesday, Centrex shares were trading at 64c.
The two companies would also partner a Joint Venture iron project in South Australia.
The Joint Venture was aimed at accelerating an exploration and study program designed to develop two 5Mtpa magnetite concentrate operations over the next five to seven years.
Centrex Chairman, David Lindh, said today the approvals marked a significant milestone for Centrex.
“The Company is now well positioned to develop a series of significant iron ore mining operations on Eyre Peninsula and in doing so become a major player in Australia’s iron ore industry,” Mr Lindh said.
WISCO is ranked third in its sector in China, with a current annual capacity of 30 million tonnes of steel.
At the close of business Wednesday, Centrex shares were trading at 64c.
Leave a Reply