PERTH (miningweekly.com) – ASX-listed copper developer Cudeco on Friday confirmed that it was in talks with Chinese companies Xiangguang Copper and Sinosteel regarding the development of its Rockland project, in Queensland.

In response to queries from the ASX, Cudeco said that it was engaging in a wide range of talks with Xiangguang Copper, which had expressed an interest in participating in the Rocklands project through offtake arrangements and equity investment.

With the Sinosteel Group, Cudeco was discussing possible participation in the Rocklands project through project finance and construction.

The Australian bourse had posed the questions to the copper junior following an article in the China Daily, which reported that Xiangguang Copper was planning to acquire a 15% stake in the Rocklands project to bolster its raw materials supply.

The daily quoted Cudeco chairperson Wayne McCrae as saying that the Xiangguang deal would assist in improving its finances, while the Chinese firm would get access to copper supplies.

However, Cudeco said on Friday that the discussions with Xiangguang did not relate to any percentage in the project and added that comments attributed to McCrae were incorrect, as the chairperson made no mention of a “deal”.

“In general terms, the message that McCrae was trying to convey was that any transaction between the company and Xiangguang Copper would be mutually beneficial,” Cudeco said.

The Rocklands project is Cudeco’s sole mineral asset, and its development from an exploration stage project to a production stage project was top priority, the company said.

“It is a widely known fact that Australian mineral projects attract overseas interest, particularly from the Chinese in the past few years, while Japan and Korea have a long history of participation in the mineral industry here,” the company added.

Cudeco said that its management had been engaged with Chinese entities since 2007.

“We confirm that the status of the talks is not such that a trading halt is warranted and may indeed be detrimental to the market as we are unable to say if and when any arrangements may be concluded,” Cudeco said.