Miner Albidon gets $15mln via Jinchuan issue

SYDNEY, Feb 28 (Reuters) - Australian-listed miner Albidon Ltd (ALB.AX) said on Thursday it had raised $15 million via a share placement to China's Jinchuan Group to help development of a nickel mine in Zambia.

Jinchuan, China's biggest nickel refiner, bought 5,084,746 Albidon shares at a price of A$3.35 each. The Chinese firm has been an active investor in overseas mining projects as it looks to secure output amid surging demand in China for industrial metals.

Albidon is digging Zambia's first nickel mine and expects to start production later this year. The mine is being designed to yield 8,600 tonnes of nickel, 1,400 tonnes of copper, more than 400 tonnes of cobalt and 15,000 ounces of platinum group metals in concentrate annually.

The deal is the latest overseas investment by Jinchuan. In January, it reached a new supply agreement with Australia's Fox Resources Ltd (FXR.AX) after becoming the company's largest shareholder.

Jinchuan also bought a 10.4 percent stake last year in another Australian nickel company, Allegiance Mining AGM.AX, which is scheduled to start annual production of 8,500 tonnes of nickel in concentrate later this year.

Outside of Australia, Jinchuan and has said it will pay Tyler Resources Inc TYS.V $214 million cash for Mexico's largest untapped copper-zinc deposit.

Albidon shares were 1.6 percent higher at A$3.20 versus a 1.9 percent loss the wider S&P/ASX200 .AXJO index. ($1=A$1.07) (Reporting by James Regan)