Hunan Nonferrous to develop tungsten-molybdenum mines in Australia

Hunan Nonferrous to develop tungsten-molybdenum mines in Australia

Hunan Nonferrous Mtleetals Holdings Group Co. Ltd. will collaborate with Thor Mining Plc. to develop tungsten and molybdenum mines in Australia, a company official told Interfax on March 21.

"Hunan Nonferrous has recently conducted initial talks with Thor Mining to develop tungsten and molybdenum mines in Australia's Northern Territory, but the company has not yet drafted any plans on how to collaborate with Thor Mining, as the completion of a due diligence assessment is still pending," a company official with the Investment Planning Department, surnamed Jiang, said.

Thor Mining announced the completion of a memorandum of understanding (MOU) with Hunan Nonferrous Metals to develop its Molyhil tungsten-molybdenum project last Tuesday. The MOU allows Hunan Nonferrous to complete their due diligence assessment by April 15 and to decide on suitable off-take amounts by April 30.

Hunan Nonferrous is a leading producer of nonferrous and minor metals in China. The company holds the world's largest deposits of tungsten and bismuth and owns China's largest zinc and antimony smelters.

Thor Mining's main business focuses on the exploration and development of molybdenum and tungsten deposits in Australia's Northern Territory. The development of the Molyhil tungsten-molybdenum project is planned to commence in May, with off-take starting in the first quarter of 2008, according to Thor Mining.

Early this February, Hunan Nonferrous announced that it will invest $116 million in Australian Compass Resources NL after receiving National Development and Reform Commission approval to explore and develop base metal oxide resources in the Australia's Northern Territory.