PERTH (miningweekly.com) – The Foreign Investment Review Board has approved ASX-listed Altona Mining’s joint venture (JV) deal with Chinese partner Sichuan Railway Investment Group (SRIG) over the Cloncurry project, in north-west Queensland.
Under a deal struck in February, SRIG, through its 50% held subsidiary China Sichuan International Investment Company (CSII), will contribute $213.5-million to the Cloncurry JV and will own 66% of the project, with Altona to contribute $25-million and hold 34%.
FIRB approval is a major condition precedent to closing the transaction.
Chinese regulatory approval is also required to allow CSII to invest in the project.
Approvals must be received, and other conditions precedent satisfied, prior to the execution of a subscription deed, and unless agreed otherwise by the JV partners, the last date for execution of the subscription deed is the end of June this year, with the transaction expected to close at the end of July.
The JV partners intend to develop a seven-million-tonne-a-year openpit mine and flotation plant capable of producing 39 000 t/y copper and 17 000 oz/y of gold over an initial mine life of 11 years.