Miner seeks more foreign investment
With many sceptical about increasing foreign ownership of Australian agricultural lands, it may be surprising to know some in the mining industry cannot get enough overseas investment, in fact it relies on it for survival, according to one industry expert.
The mining industry welcomes foreign investment with a warm smile and a cold beer, according to the executive chairman of exploration group Diatreme Resources, drumming up much-needed capital while the domestic market goes through turmoil.
Diatreme Resources has just received a significant cash injection from Chinese investors to begin efforts to mine mineral sands in the Eucla basin. Chairman Tony Fawdon is unsurprisingly buoyant about the prospect of more money flooding from overseas, saying “it is the way forward.”
“We're now at a point that we have people from South East China, people who are shareholders in our large networking group, who are interested in joint venturing into the project... and so they've put money into a company, $1.6 million in a placement and $2 million will come in in a joint venture payment which will earn them 6 per cent of the project.”