Thor Mining deal with Chinese trader

Tungsten and molybdenum, which is important raw materials for the group's expanding steel business in China.

Prices of tungsten ore have trebled in the past five years, while molybdenum oxide has risen seven-fold, as Chinese steel production has boomed in line with the country's rapid economic growth.

In an interview with Reuters in November, Thor's chief executive John Young said it would cost A$63 million to bring the mine to production, which it aims to do by early 2009.