FIRB clears Chinese for Moly investment

FIRB approval allows for investment into Australia's first major Molybdenum mine.

Sichuan Hanlong Group has been granted approval by the FIRB for investment into Moly Mines. Through the deal, Hanlong will acquire 207 million Moly Mine shares for just over $150 million. Hanlong has also agreed to provide Moly with an interest bearing US$60 million 10 year loan, as well as debt financing up to US$500 million for the development of Moly Mines’ Spinifex Ridge molybdenum mine, located near Marble Bar in Western Australia. “Spinifex Ridge will be Australia’s first major molybdenum mine and FIRB approval, which has been received less than a month after signing the Hanlong agreement, is another major step toward that goal,” Moly Mines’ managing directorDr Fisher announced. While Spinifex Ridge originally had a capital cost of $1.2 billion, this has been halved following further studies, with Moly aiming to being production at a rate of 10 million tonnes per annum.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.