After a spate of investments earlier in September, lawyers working in the resource sector are surprised that China has been able to increase its activity in the Australian resource space.
“Just when it appears that political considerations might affect bi-lateral trade, the Chinese appear to be stepping up their investment into Australia,” said Baker & McKenzie partner John Mollard. “Australia has many challenges in how it deals emotionally with the attention – but the appetite from China is definitely there.”
Uranium company Energy Metals agreed this week to a A$96m proportional takeover and rights issue from China’s state-owned China Guangdong Nuclear Power. This follows China Railway Materials’ (CRM) A$12.6m investment in FerrAus and A$27.2m investment in United Minerals Corporation.
Mollard, who is speaking on the subject at the upcoming ALB M&A Masterclass in Sydney, said that while prices remain off their peak, China will continue to invest aggressively in the Australian minerals market.
“The Chinese feel very comfortable with Australia and it is one of the preferred resource destinations. They’ve got a fair amount of exposure to Africa and other parts of Southeast Asia but they still find Australia the easier place to operate once they are here,” he said.
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To hear John Mollard discuss Chinese investment in the Australian minerals market, Register now for the ALB M&A masterclass.