SYDNEY, Jan. 11 -- Australia has approved China's Zijin Mining Group's (2899.HK: Quote) $498 million bid for Australia's Indophil Resources NL (IRN.AX: Quote), clearing the way for Zijin's dreams of becoming a top global copper producer.

The approval will soothe ties between China and Australia, which were strained last year after Australia prevented some Chinese firms from buying Australian mining businesses. Australia cited the need to protect national interests.

Zijin's Golden Resource Mining Ltd unit said on Friday the Australian government's Foreign Investment Review Board, which vets proposals on foreign takeovers, has approved the bid.

Zijin, China's biggest-listed gold miner, launched the bid in December with an eye on Indophil's potentially lucrative one-third stake in a Philippine copper and gold project. The bid was made at A$1.28 per Indophil share, representing an 18 percent premium to the Indophil stock price before the bid was announced. The stock ended trade on Friday at A$1.25.

The offer period for the bid ends on March 19.