Jiangxi Province-based Chinese steelmaker Fangda Special Steel has announced that it has abandoned its plan to purchase a 74 percent stake in South Africa-based Boboko Investment Co. after failing to receive the necessary approval from the South African authorities.
Fangda Special Steel had initially announced its purchase plan in August 2011. With this investment, the Chinese company aimed to acquire Boboko's exploration rights for the Mokopane iron mine and the Phalaborwa copper mine. The transaction price was to be $3 million, while Fangda Special Steel was to invest a further $25 million in exploration of the mines.