05 Dec 2011 Last updated at 06:12:51 GMTChina's Taifen Group...

05 Dec 2011 Last updated at 06:12:51 GMT

China's Taifen Group acquires stakes in Australia's Ferrowest

BEIJING (Scrap Monster): China’s Taifen Group will acquire 24 percent stakes in Australia's Ferrowest Limited for 3.3 billion yuan (approx $518 billion). Ferrowest Limited holds 66.7 percent of the Yalgoo Mine whose potential magnetite reserves amount to 1.2 billion tons.

The company’s forty percent of the investment will come from the group's working capital and the remaining 60 percent will be raised through bank loans. China Development Bank and several commercial banks have exhibited interests in this project.

The first vessel carrying hematite produced from the mine is expected to head for China at the end of next year. When fully completed in the next three years, the project will be able to produce 4.5 million tons of 67 percent Fe content magnetite and 1.5 million tons of hematite grading 58 percent per year.

Taifen's latest move followed its venture into Australia's IMX Resources (at a cost of A$47.10 million) as early as December 2009 and the acquisition this February of a copper mine owned by CSE of Australia.