ABC

The Foreign Investment Review Board has cleared the way for a $271 million Chinese investment in mining on Eyre Peninsula in South Australia.

China's third-largest steel group Wuhan Iron and Steel is taking a 60 per cent stake in Adelaide-based Centrex Metals' iron ore rights to five tenements on southern Eyre Peninsula.

Wuhan will also emerge with a direct 13 per cent stake in Centrex.

Centrex Metals chairman David Lindh says the cornerstones are now in place for a rapid escalation of the company's iron ore growth on Eyre Peninsula into a billion-dollar business.

He says it will position Centrex as a major player in the Australian iron ore industry.

In a statement to the Australian Stock Exchange, Centrex says the approval is unconditional.

Jobs boost

Mineral Resources Minister Paul Holloway says Chinese investment in iron ore mining on Eyre Peninsula will create jobs.

He says the Wilgerup iron ore project will create up to 150 jobs, as well as more employment indirectly.

Mr Holloway says Centrex Metals plans to export 1.6 million tonnes of iron ore annually.

The council at Port Lincoln is to vote soon on whether to seek a parliamentary inquiry into the approval process for ore exports through its port.

Centrex managing director Gerard Anderson thinks that is unnecessary.

"I would have thought the Port Lincoln council at this time when the fishing industry is facing the likelihood that people are going to be laid off that they'd be doing everything they could to try and attract new businesses in the area," he said.