There are reports that Australia’s Foreign Investment Review Board has asked China’s Baosteel Group to resubmit its application to acquire a 15 per cent holding in coal, iron ore and manganese explorer Aquila Resources Ltd
(ASX:AQA).
On August 28 Aquila announced that it had executed two landmark agreements with Baosteel, a memorandum of strategic co-operation and a share subscription agreement.
Under the agreements Baosteel will help Aquila advance some of its important projects including its West Pilbara Iron Ore project, by assisting the company to source low cost financing from Chinese institutions.
Baosteel will also pay $285.6 million for a 15 per cent stake in the company.
The Foreign Investment Review Board has 30 days to make a ruling on the application but can extend that for a further 90 days if it needs more time.
However the Dow Jones Newswires reports that due to a large number of applications for investment in the country’s mining sector from Chinese companies the board has been asking for companies to withdraw and resubmit their applications instead of activating the 90 day extension.
Aquila Resources pulled itself out of the red in 2008 to post a profit of $97.26 million.
