Yanzhou Coal Mining Company’s proposed A$3.3bn takeover of ASX-listed coal player Felix Resources has emboldened Chinese companies looking to get a foothold in Australia with two more deals on the cards.

Baosteel has formed a strategic alliance with iron ore, coal and manganese developer Aquila Resources, while emerging lithium producer Galaxy Resources has just secured a A$130m financing agreement with Chinese private investment company, Creat Group.

“The recent economic slowdown and bi-lateral relationship issues between Australia and China haven’t dented the enthusiasm of China investors to seek out quality energy and resources projects in Australia,” said Corrs Chambers Westgarth partner Adam Handley who worked on the deals. “We believe that Australian companies and the economy in general will continue to benefit from that on-going interest.”

Aquila’s key assets include Isaac Plains coal mine (Qld); Eagle Downs Coal project (Qld), Belvedere Coal project (Qld), West Pilbara iron ore project (WA), Thabazimbi iron ore project (South Africa) and Avontuur coal project (South Africa).

The Galaxy Resources deal involves a share subscription agreement for 19.9% of Galaxy's expanded capital and a loan facility. The deal is worth up to A$156m enabling the development of Galaxy’s key Mt Cattlin spodumene project, including its Jiangsu lithium carbonate project in China.

Mallesons partner Nigel Hunt and Senior Associate Daniel Kirk are advising Aquila in the strategic partnership with Baosteel, which is being advised by Corrs. Corrs is also advising Creat Group for the financing arrangement with Galaxy, which is being advised by Allion Legal (formerly Pullinger Readhead Lucas).