UPDATE: Hanlong Mining To Invest $5 Bln In Australia Miners...

UPDATE: Hanlong Mining To Invest $5 Bln In Australia Miners 30/04/2010 5:10PM

By David Fickling Of DOW JONES NEWSWIRES

SYDNEY (Dow Jones)--Hanlong Mining said Friday it plans to invest $5 billion in Australian miners as part of plans to become a "fourth force" in the country's iron ore sector to rival BHP Billiton Ltd. (BHP.AU), Rio Tinto Ltd. (RIO.AU), and Fortescue Metals Group Ltd. (FMG.AU).

The Australian subsidiary of Chengdu-based conglomerate Sichuan Hanlong said in a release it HAS financing from China Development Bank and Export-Import Bank of China to make investments in Australian iron ore assets.

A separate, unspecified amount is available for investments in infrastructure to bring mining products to market, it added.

Last week the company completed the acquisition of a 57% stake in Moly Mines Ltd. (MOL.AU), a molybdenum miner in Western Australia's Pilbara region.

It has spoken to around a dozen companies in Pilbara and South Australia about making strategic investments in iron ore and iron alloys, a person familiar with the discussions said.

Sichuan Hanlong has also acquired a controlling interest in General Moly Inc. (GMO.T), a U.S. molybdenum miner.

Molybdenum is commonly used as a steel alloy and to remove sulfur impurities from petroleum products.

E.