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Chinese enterprises to invest in uranium and iron mines in Australia

(chinadaily.com.cn)
Updated: 2009-09-09 14:02

Chinese state-owned energy group China Guangdong Nuclear Power Corporation (CGNPC)'s subsidiary CGNPC Uranium Resources Co Ltd plans to acquire up to 70 percent of the Australian uranium explorer Energy Metals Ltd in a bid of A$119.46 million ($102.16 million), Australia Associated Press reported, according to people.com.cn.

The report said the takeover price will be A$1.02 a share; the last traded price of the company's share was 86 cents.

Energy Metals' chairman Oscar Aamodt said in a statement the board believed CGNPC would help the company in its transition from uranium explorer to uranium producer.

The takeover has yet to be approved by the Australian Foreign Investment Review Board and the Chinese regulatory, the report said.

Meanwhile, China Railway Materials Commercial Corp has agreed with Australian iron ore explorer FerrAus to take over 12 percent of the latter's share worth A$12.60 million, the Wall Street Journal said on September 8, according to people.com.cn.