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China’s Hanlong Group to take control of African iron mine
January 1, 2013, 8:25 pm

China’s Hanlong Group is aiming at gaining control over Australian mining company Sundance early next year enabling it to takeover a key iron ore supply in Africa.

The mine holds 865 million to 925 million tonnes of iron ore, Xinhua reported, citing what it said was an initial estimate.

Chinese news agency Xinhua quoted officials at the privately owned Hanlong as saying on Friday that the acquisition process was to start on February 26 and end March 1 after the submission of documents to Australian authorities.

Sundance Resources said in August that it had accepted a revised takeover offer from Hanlong in a deal worth about $1.45 billion.

The Hanlong Group has combined assets of $5.7 billion with ownership or stakes in more than 30 firms.

According to Xinhua, the acquisition would hand Hanlong control of the Sundance-controlled Mbalam iron ore mine that straddles the West African countries of Cameroon and the Republic of Congo.

Xinhua quoted unnamed observers emphasising that Hanlong’s control of the mine would give China more influence in setting international iron ore prices.

Source: Agencies

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