Australia Asks China¡¯s Anshan to Resubmit Investment (Update1)

Anshan Iron & Steel Group, a Chinese steelmaker, was asked to resubmit an application to increase its stake in Gindalbie Metals Ltd., the third major overseas investment delayed by Australia in two months.

Anshan resubmitted its application on April 17 after consulting with Australia¡¯s Foreign Investment Review Board, Perth-based Gindalbie said today in a statement to the Australian stock exchange. No details were given for why the previous submission was withdrawn.

The Chinese company is seeking Australian government approval to invest A$162 million ($113 million) in Gindalbie, raising its stake to 36 percent from 12.6 percent. Australian lawmakers last month voted to start an inquiry into foreign investment laws amid a backlash over Aluminum Corp. of China¡¯s proposed $19.5 billion investment in Rio Tinto Group.

¡°The timing of a decision is unknown, but Gindalbie remains confident that AnSteel will receive the approvals it requires,¡± the company said in a statement.

Gindalbie rose 2.4 percent to 64 cents at 4:10 p.m. Sydney time on the exchange. The two companies are planning a A$1.8 billion iron ore development in Western Australia state and are also still awaiting environmental approvals for the mine.

Gindalbie and Anshan, part of China¡¯s fourth-largest steelmaking group, have agreed to extend the deadline for completing the investment to July 16 to allow for the delays in environmental and investment regulator approvals, the statement said. Gindalbie spokesman Michael Weir declined to comment further when reached by telephone.

Australia last month extended its probe into the Chinalco proposal by as many as 90 days and blocked a A$2.6 billion takeover of OZ Minerals Ltd. by China Minmetals Group on national-security concern. It¡¯s yet to rule on a revised A$1.2 billion bid from Minmetals for most of OZ Minerals¡¯ assets.

A separate probe into Hunan Valin Iron & Steel Group¡¯s A$1.3 billion investment in Fortescue Metals Group Ltd. was initially extended by the regulator before being accepted with conditions in March.

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