Hanlong Mining has received approval from Australia's Foreign Investment Review board for its $1.3 billion takeover of Sundance Resources, the Australian company said.

Hanlong, a subsidiary of Chinese private company Hanlong Group, is interested in buying Sundance's Mbalam iron ore project, which is worth $4.7 billion and is located on the border of Congo and Cameroon in Africa. The move will help China further diversify its iron ore supply channels.

Sundance plans to become a major iron ore producer through the Mbalam project, which includes mines, ports and railways with an expected annual output of 35 million tons of iron ore during the first 10 years.

The Chinese company now has to gain approval from the National Development and Reform Commission by June 30 and credit approval from China Development Bank by August 31.

According to a statement in May, Hanlong expects to complete the transaction by November.

Hanlong, established in 1997 in Southwest China's Sichuan province with more than 30 subsidiaries, has been talking with Sundance since July for the acquisition.