Chinese alumina and aluminium producer Chiping Xinfa Huayu Alumina has elected to exercise an option to acquire a 10% stake in Australia's Cape Alumina, which is working on developing the Wenlock bauxite deposit in Queensland.
The stake will be bought for A$4.6m (US$3.6m) from Metallica Minerals, which will see its holding drop accordingly to 40%.
Cape Alumina chief executive Dr Paul Messenger said Xinfa's presence as a shareholder was a vote of confidence in the emerging bauxite producer. "Cape Alumina's close link with Xinfa may also lead to a major off-take agreement for bauxite eventually produced by Cape Alumina."
Xinfa is one of China's largest bauxite importers—it imported around 5 million tonnes in 2006. The bauxite is fed into its Chiping alumina refinery and aluminium smelter complex in Shandong province.
豫公网安备41010502003434号