Hunan Valin Iron & Steel Group’s US$893 million purchase of a 17.6% stake in Fortescue Metals Group was approved by Australia under certain conditions, Bloomberg reported. The conditions apply to Hunan Valin’s board nominations and cover potential conflicts of interest with sales and marketing, Australian Treasurer Wayne Swan said. They also require the company to report to Australia’s Foreign Investment Review Board on its compliance. Analysts said that the completion of the deal shows that Australia is still open to Chinese investment in the mining sector. China Minmetals submitted a new proposal for its takeover of OZ Minerals after its initial offer was rejected over security concerns.
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