BRIEF: China Hanking’s Australian gold business disposal collapses

Iron ore producer China Hanking Holdings Ltd. (3788.HK) announced on Wednesday that the planned sale of its Primary Gold Australian subsidiary to Inner Mongolia Huineng Coal and Electricity Group has collapsed. Primary Gold’s main asset is the Mount Bundy gold project in Australia’s Northern Territory.

A share sale agreement signed by both parties in early 2024 valued the deal at A$300 million ($197 million), and was subject to several conditions, including the buyer obtaining a no-objection notification from Australia’s Foreign Investment Review Board (FIRB) by July 1. But the buyer failed to secure the required FIRB approval in time. As a result, Hanking issued a termination notice to the buyer and its guarantor on the same day, ending the agreement.

The deal’s collapse means Hanking must now reassess its development plans for the Australian asset. Hanking said it is currently reviewing its gold mining strategy and will focus on optimizing resource allocation. It plans to announce a new strategic plan in due course.

China Hanking shares opened higher on Wednesday but turned lower to close down 0.44% at HK$2.28 by the midday break. The stock has nearly tripled so far this year.

By Lee Shih Ta

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