Wednesday, 4 October, 2006

by Ali Moore
ABC Lateline Business

Compass Resources has struck a $72 million partnership deal with one of China's biggest producers of base metals, signing over a 50 per cent stake in its Northern Territory operations.

ALI MOORE: Still on mining: One of the Northern Territory's largest mining companies has struck a $72 million partnership deal with one of China's biggest producers of base metals. In return, Compass Resources has signed over a 50 per cent stake in its Northern Territory operations, including the Browns oxide mine on the former rum jungle site. Hunan Non Ferrous Metals will also become a major user of the mine's coal output. The Australian company's managing director, who has just returned from signing the deal in China, says the deal won't give the Chinese company access to any uranium resources Compass might find in the future.

RICHARD SWANN: Because it's in such an early stage, it's effectively not possible to put a value on our uranium resources. So we'd like to retain those outside of any agreement.

ALI MOORE: The money will be used for the construction of a sulphide plant in the territory, but the location still hasn't been decided.