China's effort to have a grip on steel-making companies to fulfill its needs continue as the Sichuan Hanlong Group made a bid for Australia-listed firm Sundance Resources for A$1.4 billion ($1.5 billion).

Reports said that the Chinese conglomerate, also engaged into energy, real estate, pharmaceuticals, industrial chemicals and technology, has offered a premium of A$0.50 a share for 25 percent premium to Sundance, which on Friday had a closing price of A$0.40.

Reuters said in a report tha this would be the second takeover offer in a week lodged by Hanlong for an Australia-listed company exploring for minerals in Africa after it bid A$144 million on June 11 for Bannerman Resources , which is looking for uranium in Namibia.

Hanlong is already Sundance's majority shareholder with 18.6 percent of the firm.

Sundance's board is recommending its shareholders take no action until it meets with Hanlong over the terms of the bid, which Sundance deems inadequate, according to a company statement.

The A$0.50 a share offer represents a 25 percent premium to Sundance closing price of A$0.40 on Friday.

The shares jumped 27.5 percent after resuming trade at 0200 GMT.

Sundance has made no secret it's seeking Chinese investors to help fund its $4.7 billion Mbalam iron ore project straddling the republics of Cameroon and Congo.

Sundance Managing Director Giulio Casello in March told Reuters in an interview Sundance was in talks with Chinese steel mills as candidates to invest in the project.

Beijing has been pushing its steel makers to consolidate domestic steelmaking and reduce reliance on sector behemoths Vale , Rio Tinto and BHP Billiton , which together control about 70 percent of seaborne-traded ore.

China has plenty of its own iron ore. But much of it is low grade, meaning it is cheaper to import ore that has higher iron content from countries such as Australia, Brazil and Africa.

Sundance says its ore it suitable for direct shipping to steel mills and that if fully developed the Mbalam project could yield 35 million tonnes of iron ore a year.

Reuters said this would be nearly equal to the annual iron ore production of AngloAmerican in Africa, much of it through its majority stake in Kumba Iron Ore .

Hanlong is also the majority shareholder in Moly Mines , which is developing a molybdenum and copper mine in Australia and Marenica Energy , which is looking for uranium, also in Australia

In November 2010, Hanlong signed a cooperation agreement with the Export-Import Bank of China for loans of up to $1.5 billion to fund its overseas expansion plans.

Hanlong is being advised by Bank of America-Merrill Lynch, and Sundance is being advised by UBS. With reports from Reuters