China Metallurgical Corp has agreed to acquire a yet-to-be-developed iron ore mine in Australia in a US$370m deal.
Cape Lambert Iron Ore says it has signed a preliminary pact to sell its project pending approvals from Australian foreign investment regulators and shareholders.
China Metallurgical has paid a A$10m deposit and has until the end of April to complete due diligence on the project and obtain Chinese Government approvals for the acquisition, Reuters reports.
Cape Lambert is expected to produce around 15 million tonnes of ore annually for 20 years starting in 2011 or 2012.
By staff writer
