CuDeco Ltd., seeking to build the Rocklands project in Australia, surged in Sydney trading after it said its engineer, Sinosteel Corp., had expressed confidence the copper-cobalt project would succeed.
CuDeco shares rose 30 percent to A$2.22 on the Australian stock exchange at the 4:10 p.m. close of trading in Sydney today.
Sinosteel signed an agreement on July 23 to perform the basic engineering design for Rocklands, near Cloncurry in north-west Queensland, which is due to start mining next year.
“We have received a warm and welcome confidence in the project from someone who knows the copper business, one of the world’s largest players in the mining industry, Sinosteel,” CuDeco Chairman Wayne McCrae said in a statement to the exchange today. “This confidence is in direct contrast to the reports that Sinosteel did not have confidence in the Rocklands project or the managing director of CuDeco.”