China’s Chiping Xinfa Huaya Alumina increases exposure to Australan bauxite
March 23, 2007 Filed Under: Bauxite Mining, Mining Services
China’s largest independent alumina-aluminum producer, Chiping Xinfa Huayu Alumina Co Ltd, has increased exposure to the Australian bauxite mining industry by acquiring additional 7.5 pct in Cape Alumina Ltd, to take its stake to 17.5 pct, Cape Alumina said.
Xinfa, which acquired the stake from Anegada Metals Corp Ltd for an undisclosed sum, has also acquired a 2 pct stake in Metallica Minerals Corp Ltd, which owns 40 pct of Cape Alumina.
Last week, Xinfa acquired an initial 10 pct stake for 4.6 mln aud in Cape Alumina which owns an undeveloped bauxite project and exploration licences in the Weipa region in Australia’s far north-east where Rio Tinto and Canada’s Alcan Ltd have bauxite operations.
As part of the ownership restructuring of Cape Alumina, two US equity fund groups – Resource Capital Funds III LP and IV LP (RCF), have purchased a combined 17.5 pct of Cape Alumina shares from Anegada which previously owned 25 pct of the company.
RCF has also increased its stake in Metallica to 10 pct from 7.8 pct.
Metallica chief executive Andrew Gillies said the restructuring is designed to advance the development of Cape Alumina’s Wenlock bauxite project and exploration in the Weipa region
The Wenlock project is estimated to contain 54 mln metric tons of bauxite.
Information from: www.fxstreet.com