not even a sniff in the papers!!, page-5

RPT-China swoops on Australian iron ore, uranium firms.

Tue Sep 8, 2009

SYDNEY, Sept 8 (Reuters) - Chinese state-owned firms expanded their footprint in Australia's mining industry on Tuesday, agreeing to help fund two iron ore explorers in return for supply contracts and taking a controlling stake in a uranium prospector. China Guangdong Nuclear Power Holding Co. Ltd agreed a takeover of uranium prospector Energy Metals (EME.AX).

All foreign sovereign investments need Australian government approval, and the queue of Chinese state investments awaiting the government's go-ahead is lengthening by the day, all at a time of political tensions between Canberra and Beijing.

In the next few weeks, the Australian government's secretive Foreign Investment Review Board is expected to rule on a Chinese state-owned firm's $400 million deal to take a majority stake in rare-earths company Lynas Corp's (LYC.AX). That deal was announced back in May.

China is swooping on Australian prospectors and miners at a time when they are hungry for new capital to dig new mines and build new rail lines and ports. Much of Australia's resources are in remote outback areas with little infrastructure.

Australian uranium is also a growing target for Chinese capital, with state and national governments now encouraging new uranium mines afters years of political hostility. China Guangdong Nuclear (CGNPC) agreed to buy up to 70 percent of Energy Metals.

"The Energy Metals board believes that CGNPC's financial resources, technical expertise and strategic intent to develop its uranium resource portfolio, will greatly assist Energy Metals in its transition from explorer to developer and producer," Chairman Oscar Aamodt said in a statement. Energy Metals' 40 percent shareholder, Jindalee Resources (JRL.AX) Ltd, intends to accept the Chinese bid, in the absence of a superior offer, Energy Metals said. ($1=1.169 Australian Dollar).

© Thomson Reuters 2009 All rights reserved.


Uranium follows rare earths as China eyes strategic control.

Robin Bromby | September 08, 2009
Article from: The Australian.

FIRST rare earths, now uranium. It seems the Chinese are determined to get control of key strategic metals - and Australia seems to be welcoming the idea.

Chinese companies have effectively moved to take control of the two most advanced rare earths projects here (although one is still subject to approval by the Foreign Investment Review Board).

And, as we saw this morning, uranium is also high on Beijing’s shopping list. It is proposed that China Guangdong Nuclear Power (CGNP) will acquire 70 per cent of Energy Metals (EME) which has the Bigrlyi uranium project in the Northern Territory, where there is already a JORC-compliant economic uranium resource (as well as vanadium). This is almost certain to succeed because Jindalee Resources (JRL) owns 40 per cent of EME and has agreed to the deal.

But the price of $1.02 a share is only a 19 per cent premium. “Only?” you might reply. Yes, while it does seem reasonable on first blush, it’s still cheap as chips for what could be Australia’s next uranium mine to be developed. CGNP has four operating nuclear power stations and what better for it than to control its own mines, rather than have to be at the mercy of the open market?

Over the border in South Australia, we already have Sinosteel financing the Crocker Well uranium deposit owned by PepinNini Minerals (PNN) - another project that could be in Australia’s next generation of uranium mines.

Be prepared for more such moves.