China's Sichuan Hanlong (Group) Co Ltd announced on Monday that it has received approval from Australia's Foreign Investment Review Board for a $1.3 billion takeover of the iron ore company Sundance Resources, the latest overseas mining acquisition by China's private sector.

The deal is part of a trend of recent years that has seen both State-owned and private companies gain overseas mining assets despite potential risks, helping the country diversify its iron ore supply channels and reduce its dependence on imports.

Liu Han, chairman of Hanlong Group, said the acquisition will help guarantee the country's resource supply and sustainable development.