It is reported that Asia's largest nickel refiner Jinchuan Group has gained approval from the China’s National Development & Reform Commission for an option to buy into the Australian company Allegiance Mining.

By financing the nickel sulfide project of the Avebury nickel mine, Jinchuan Group will have exclusive rights of selling products of the mine, which is on Tasmania's west coast, owned by Allegiance Mining. By subscribing Allegiance's stock, Jinchuan Group will also have a position in its board.

Allegiance Mining was set up in Sydney in 1993 and then listed in Australian Stock Exchange. With reserves of 11.6 million tonnes, the Avebury nickel mine is projected to serve at least eight years.

Jinchuan had also signed a nickel concentrate off take and subordinated debt financing contract with the Australian miner, agreeing to buy 70,000 tonnes of metal in next 10 years and providing AUD 5 million loan.

Jinchuan is China's largest alnico production base and platinum metals refiner, supplying 90% of nickel resource.

(Sourced from MySteel.net)