The Foreign Investment Review Board has given the okay for China’s Baotou Iron Ore and Steel to enter into a joint venture with Centrex Metals (ASX:CXM).
The FIRB has cleared Baotou to pay up to $40 million in exchange for ownership of up to 50% of the proposed joint venture, which will mine Centrex’s Bungalow iron ore deposit site in South Australia.
China’s National Development Reform Commission has also improved the investment, Centrex said.
Under the arrangement, Baotou will make the payments in two installments of $8 million, and a third payment of $24 million.
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