NFC's Proposed Investment in Australian Zinc Miner Clears Final Regulatory Hurdles

SHANGHAI, July 6 -- China Nonferrous Metal Industry's Foreign Engineering and Construction Co. Ltd. (NFC) has received the last two regulatory approvals for its proposed AUD 10 million ($7.95 million) investment into zinc miner Terramin Australia Ltd., NFC announced on July 4.

    Shenzhen Stock Exchange-listed NFC said China's Ministry of Commerce (MOFCOM) approved the deal on June 26 and China's State Administration of Foreign Exchange gave the thumbs up on June 20. NFC's Terramin investment has now passed both Australian and Chinese government reviews.

    Go-aheads from Australia's Foreign Investment Review Board (FIRB) and China's National Development and Reform Commission were received in early June.

    According to an agreement signed between the two companies in March 2009, Terramin will issue 15.5 million new shares at AUD 0.65 ($0.52) per share to NFC, which will make it the largest shareholder in the Australian zinc miner with an 11.22 percent stake.

    Terramin has total zinc and lead resources of 4.05 million tons, measured by metal content, at its Angas Zinc Mine in South Australia and the Tala Hamza zinc and lead deposit in Algeria.

    NFC's share price stood at RMB 15.78 ($2.31) at 11:30 a.m. Beijing time on July 6 on the Shenzhen Stock Exchange, up 0.19 percent from the previous trading day.

    (Source: INTERFAX-CHINA)