Bidco, the wholly owned Australian subsidiary of Guangdong Rising Asset Management, struck a preliminary in-principle agreement to acquire Caledon at £12 a share back in November.

The proposed acquisition recently gained approval from China’s State-owned Assets Supervision and Administration Commission.

“The receipt of the SASAC approval is a very positive step forward in securing the necessary Chinese regulatory approvals,” GRAM chairman Li Jinming said.

“GRAM remains committed to working with Caledon to complete the possible acquisition of Caledon as soon as possible and our financing banks remain supportive of the possible acquisition. We continue to actively engage with the regulatory authorities in China.”

Caledon, owner of the Cook underground mine in the Bowen Basin, was up for sale for many months until the London-based company ended its sales process in December 2009.

Merger talks between Caledon and its major stakeholder Polo Resources were scrapped in late June of 2010.