Sinosteel President forecasts economic and trade benefits

The President of China's state-owned Sinosteel Corporation, Huang Tianwen....

  The President of China's state-owned Sinosteel Corporation, Huang Tianwen, has forecast economic and trade benefits to flow from a new Australian minerals joint venture.Speaking at an Adelaide function for the opening of a joint South Australian office with PepinNini Minerals, Mr Tianwen said that "thanks to the agreements between Chinese and Australian governments, the cooperation between Sinosteel and PepinNini will have far-reaching influence for both countries on peaceful utilisation of nuclear power and nuclear materials trading"."It will also be very helpful to promote and strengthen the economic and trade relations between China and Australia," he said.Mr Tianwen said Sinosteel had 20 years ago become the first Chinese state-owned company to set up a joint venture with RIo Tinto in 1987 in WA for its iron ore business."Over the past 20 years, the joint venture has made significant contribution to the rapid development of WA's economy," he said."Today, 20 years since then, Sinosteel becomes the very first Chinese state-owned company to set up a joint venture with PepinNini in South Australia to develop uranium resources."I firmly believe through our joint efforts, we would make more contributions to the economic development of SA, and reinforce the economic and trade relations between China and SA.PepinNini's Managing Director, Norman Kennedy, said the new joint Sinosteel-PepinNini SA office has primarily been established to facilitate the rapid development of the Crocker Well Uranium Deposit."It is an office for the Sinosteel PepinNini Joint Venture which will be managed by Sinosteel PepinNini Curnamona Management Pty Limited. The management company will not only look at developing the uranium potential of our exploration tenements but will also investigate the potential for other minerals including copper, gold, lead and zinc," he said."Located about 120km due west of Broken Hill Crocker Well has a JORC compliant Inferred Resource of nearly 20 million lbs of U3O8. Both Sinosteel and PepinNini are focused on getting a uranium mine into production at Crocker Well by 2010. Having a focused project team located in this office will go a long way to ensuring we can achieve production in the shortest timeframe possible. "Already we are in discussion with various Government Departments in relation to the statutory approvals and requirements to develop the project."Mr Kennedy said the decision by Sinosteel to establish an office in Adelaide was a significant endorsement of the resource potential of SA. "This is only the second office in Australia to be established by Sinosteel. They have had a presence in Perth for approximately 20 years. I am sure other Chinese companies will follow the lead of Sinosteel in establishing a presence here in Adelaide," he said.Officially opening the new office, SA Minister for Resources Development, The Hon Paul Holloway, said the State Government saw the joint venture as a significant milestone for SA "as it represents one of the first of what we hope is sustained Chinese investment in the SA resources industry."