The Development and Reform Commission of China's Sichuan Province has announced its approval for the investment of Sichuan-based Chinese private sector company Taifeng Group in Australian mining company Ferrowest Limited.
The investment in question, which is Taifeng Group's third mining project investment in Australia, was approved by the Foreign Investment Review Board (FIRB) of Australia at the end of 2011. Accordingly, Taifeng Group will hold a 24 percent stake in Ferrowest for a consideration of RMB 3.3 billion (US$523.9 million) and will be the major shareholder in the company.
In line with the investment, Taifeng Group will also own a 66.7 percent stake in Ferrowest's Yogi magnetite mine in Western Australia, which has 1.2 billion mt of inferred reserves of magnetite ore. The first cargo of magnetite ore from Yogi magnetite mine will be shipped to China at the end of 2012. Full production will be reached within three years, with an expected annual output of 4.5 million mt of iron ore with 67 percent Fe concent.