Chinas National Development and Reform Commission (NDRC),
the countrys economic regulator, is simplifying its
approval process for Chinese companies seeking to invest
A draft implementation
plan for the NDRCs new process is expected to be
published in early February, Gloria Rong, mergers and
acquisitions manager at China Chengtong Holdings Group Ltd.
(CCHG), told AMM sister publication Steel
First on the sidelines of the Central and East Africa
Mining Investment Summit in London. CCHG is an asset management
platform for the state-owned Assets Supervision and
Administration Commission of the State Council.
NDRC consent is one of
the key requirements for Chinese mining companies looking to
commissions new approach, announced in December 2013,
only overseas investments valued at more than $1 billion or
targeted in "sensitive" regions or industries would require the
regulators approval. Deals below the $1-billion mark
might still need to be "recorded" with the NDRC, according to
"It remains to be seen
whether NDRC policy will be to only allow one deal to be filed
at a time, thereby preventing multiple Chinese companies from
undertaking substantive work on the same project and so be
unable to bid against each other," Australia-based law firm
King & Wood Mallesons said on its website Jan. 21.
The NDRC couldnt
be reached for comment.
Last year, the state
economic planner withheld final regulatory approval from
Chinese private company Hanlong Mining Group until it could
find a state-owned partner for its proposed Australian
$1.4-billion ($1.2-billion) takeover of Sundance Resources
Ltd., an Australia-listed iron ore junior focused on South
Sundance had signed
preliminary cooperation agreements with Chinese state-owned
companies for its 35-million-tonne-per-year Mbalam project on
the border of Cameroon and Republic of Congo, before
Hanlongs proposed acquisition of the junior in 2011 (
amm.com, Oct. 4, 2011).
failed in April last year.