Chinese assess SI mining projects

Giant Chinese energy company Qinghua Group - with more than $12 billion of mining assets - is assessing several billion-dollar projects across the South Island, with the potential for generating thousands of jobs.

The west coasts of both the North and South Islands, with onshore and offshore iron-ore deposits, are being assessed for possible sites for a port purchase and steel mill construction.

The South Island West Coast's specialist hard coking coal is a key ingredient for steel manufacturing.

Otago and Southland lignite deposits could be used for petrochemical or briquetting plants.

Qinghua's joint venture partners Greywolf Gold-mining, incorporated in March this year, are spearheading project analysis, saying Qinghua has $10 billion to spend in New Zealand in 2011.

Greywolf is proposing a separate, more than $200 million dual listing on the New Zealand and Australian stock exchanges in the new year.

Sydney-based Greywolf chief executive Edward Lancaster confirmed the Qinghua Group proposals when contacted yesterday, following widespread speculation during last week's annual New Zealand branch of the Australasian Institute of Mining and Metallurgy conference in Auckland.

"We had hoped to make announcements in the new year, but the [three New Zealand] visits by Qinghua have been attracting attention," said Mr Lancaster, whose company directors include brother Michael and son Jolian.

Mr Lancaster said meetings were being sought through the offices of Prime Minister John Key and Energy and Resources Minister Gerry Brownlee, but the Pike River disaster had prompted deferral of meetings "for several weeks", he said.

The west coasts of both the North and South Islands, with onshore and offshore iron-ore deposits, are being assessed for possible sites for a port purchase and steel mill construction.

The South Island West Coast's specialist hard coking coal is a key ingredient for steel manufacturing.

Otago and Southland lignite deposits could be used for petrochemical or briquetting plants.

Qinghua's joint venture partners Greywolf Gold-mining, incorporated in March this year, are spearheading project analysis, saying Qinghua has $10 billion to spend in New Zealand in 2011.

Greywolf is proposing a separate, more than $200 million dual listing on the New Zealand and Australian stock exchanges in the new year.

Sydney-based Greywolf chief executive Edward Lancaster confirmed the Qinghua Group proposals when contacted yesterday, following widespread speculation during last week's annual New Zealand branch of the Australasian Institute of Mining and Metallurgy conference in Auckland.

"We had hoped to make announcements in the new year, but the [three New Zealand] visits by Qinghua have been attracting attention," said Mr Lancaster, whose company directors include brother Michael and son Jolian.

Mr Lancaster said meetings were being sought through the offices of Prime Minister John Key and Energy and Resources Minister Gerry Brownlee, but the Pike River disaster had prompted deferral of meetings "for several weeks", he said.