Xinhua reported that China's Hanlong Group intends to take over Australian mining company Sundance early next year and gain control over a key supply of iron ore in Africa.
The Xinhua news agency quoted officials at the privately owned Hanlong as saying that the acquisition process was to start on February 26th and end March 1st after the submission of documents to Australian authorities.
Sundance Resources said that it had accepted a revised takeover offer from Hanlong in a deal worth about AUD 1.4 billion.
According to Xinhua, the acquisition would hand Hanlong control of the Sundance controlled Mbalam iron ore mine that straddles the West African countries of Cameroon and the Republic of Congo.
The mine holds 865 million tonne to 925 million tonnes of iron ore. The agency also cited unnamed observers as saying Hanlong's control of the mine would give China more influence in setting international iron ore prices.
Major investments and acquisitions by China in natural resources projects overseas, including Africa, have helped fuel its rise to become the world's second largest economy.
Xinhua added that Hanlong Group has combined assets of CNY 36 billion with ownership or stakes in more than 30 firms.
