It is reported that China Investment Corp is in advanced discussions to invest around USD 300 million in Mongolia focused miner Hong Kong Lung Ming Investment Holdings Ltd.
The talks are the latest example of China appetite for buying stakes in resource companies across the globe. It also highlights Chinese interest in its northern neighbor as resource rich Mongolia tries to capitalize on resilient Chinese demand.
According to one person familiar with the situation, CIC is in discussions to buy convertible bonds issued by Lung Ming ahead of a planned Hong Kong initial public offering for the miner. The company hopes an IPO can take place in the H1 of next year.
A CIC spokeswoman declined to comment. Lung Ming, which doesn't have a Web site couldn't be reached for comment.
Other high profile backers for the Mongolian mining venture include Singapore's Temasek Holdings Pte Ltd and private equity firm Hopu Investment Management Co which have previously invested a combined USD 300 million into Lung Ming.
