Australian gold and copper miner CuDeco said it was in talks with various Chinese companies over its Rocklands Project but it had not reached any agreement.
"The Company advises that its representatives are in China at present and in discussion with a number of different entities in relation to different aspects of the Rocklands Project," the Australian miner.
Earlier today the China Daily quoted the head of Xiangguang Copper as saying that the company wanted to buy 15 per cent of the Rocklands mine in Queensland to bolster its raw material supplies.
CuDeco shares soared on the Chinese media report and extended gains after the company's statement to end the day up 54 cents, or 13 per cent, at $4.70.
"We are interested in purchasing overseas resources to secure our material supplies and CuDeco could be a good option," Xiangguang Copper President Liu Zhiguang told the Chinese paper.
CuDeco's Chairman Wayne McCrae was quoted as saying the mine would have a 10-year exploration timeframe, annual production capacity of 3 million tonnes and annual revenue of about $US960 million.
"The Xiangguang deal will help improve our finances, while the Chinese firm will get access to copper supplies," McCrae told the paper.
He added the company was in talks with Chinese iron ore trader Sinosteel for project financing estimated at around $US100 million, the China Daily report said.
Xiangguang Copper is part of China's Shandong Fengxiang Group, which mainly supplies chicken to global fast food chains.
Reuters
