Hanlong Mining to Invest Over $4bn in Australia

4 May 2010 (Last Updated May 4th, 2010 18:30)

Hanlong Mining Investment, the owner of Moly Mines, is looking to put $4.6bn in resource assets in Australia to help meet China’s growing demands. Hanlong, which acquired a 55% stake in Perth-based Moly Mines last month, will invest in steel-related materials including molybdenum and mang

Hanlong Mining Investment, the owner of Moly Mines, is looking to put $4.6bn in resource assets in Australia to help meet China’s growing demands.

Hanlong, which acquired a 55% stake in Perth-based Moly Mines last month, will invest in steel-related materials including molybdenum and manganese.

In a statement, the company said it wants to build a major mining house worth $3bn to £5bn and will invest in related infrastructure to bring raw materials from mine to market to avoid supply bottlenecks in road, rail and port facilities.

The Chinese company, which has assets worth $2.9bn, is seeking to become a 25% stakeholder in US-based General Moly, which has an 80% stake in a molybdenum project in Nevada.

Acquiring resources for Chinese companies will help the country gain more control on pricing and simultaneously reduce its dependence on suppliers including BHP Billiton, which recently moved to a quarter-pricing system.

China Minmetals and China Petrochemical went on a $32bn acquisition spree last year buying zinc mines in Australia and oil reserves in Nigeria as the nation’s economy grew at its fastest rate since 2007.