China CITIC ups stake in Australia's Macarthur Coal

MELBOURNE, April 2 (Reuters) - Chinese oil and metals group CITIC Resources (1205.HK) has raised its stake in Australian miner Macarthur Coal (MCC.AX) to just under 24 percent, the latest expansion of Chinese investment in Australian mining.

The A$24 million ($17 million) purchase, disclosed in a notice to the Australian Securities Exchange on Thursday, was made under rules that allow big shareholders to buy 3 percent every six months without a requirement to make a full takeover offer.

The move comes as the Australian government is reviewing two Chinese state-owned companies' investments in Australian mining assets -- Chinalco's $19.5 billion tie-up with global miner Rio Tinto Ltd (RIO.AX) (RIO.L) and a $1.2 billion offer by Minmetals for most of OZ Minerals Ltd's (OZL.AX) mines.

Chinese investment in mining assets has sparked protests from some politicians in Australia concerned about possible foreign government control over Australian resources, the country's key export revenue earner.

"The concerns that may be raised with regards to Chinese investment in iron ore or other metal investments are different with regards to coal, because China is not a major customer," said Shane Stephan, Macarthur's chief development officer.

Earlier this week Australia gave the green light for Chinese state-owned Hunan Valin Iron and Steel Group to buy up to 17.55 percent of Australia's no.3 iron ore miner Fortescue Metals Group (FMG.AX).

CITIC became Macarthur's biggest shareholder last July. Stephan said CITIC had not approached it about any bigger move on the company.

"It's fair to say it's not a surprise that at current prices that they have decided to increase their shareholding," he told Reuters. "It's just a sign that CITIC are a long term supporter of Macarthur Coal."

Macarthur shares rose 7 percent to A$3.80 on Thursday. Last June they were trading above A$21 amid takeover speculation.

A CITIC official in Australia could not be reached for comment. ($1=1.440 Australian Dollar) (Reporting by Sonali Paul; Editing by Jonathan Standing)