Sinosteel permitted to invest in Australia

05 April 2007

[PepinNini, Bloomberg, 4 April] Sinosteel Corp of China has received approval to invest in a South Australian uranium company. The Australian Foreign Investment Review Board (FIRB) said it has no objections in terms of the government's foreign investment policy for Sinosteel to invest in PepinNini Minerals Ltd's Curnamona Province project in South Australia, which comprises the Crocker Well and Mount Victoria uranium deposits. Under the deal, Sinosteel will acquire a 60% interest in the assets of PepinNini Resources Curnamona Pty Ltd, a wholly-owned subsidiary of PepinNini Minerals. Sinosteel has the option to take all of the uranium produced, should a mine be developed. Australia and China ratified the Australia-China Nuclear Transfer Agreement and the Nuclear Cooperation Agreement on 5 January, clearing the way for the export of Australian uranium to China. In February, Sinosteel agreed to link up with China National Nuclear Corp (CNNC) to accelerate exploration and development of overseas uranium resources. The FIRB approval of the PepinNini-Sinosteel project is a further indication that the Australian government may revise its legislation restricting the number of uranium mines in operation.

Further information

PepinNini Minerals

Foreign Investment Review Board

WNA's Australia's Uranium and Who Buys It information paper

WNN: China to help develop Australian uranium
WNN: China buys into Australian uranium