China’s Baosteel Group has announced that the company is confident to takeover bid for Aquila Resources Ltd for A$1.4 billion.

Baosteel Resources Australia, a wholly owned subsidiary of Baosteel Resources International, and Australian rail freight operator Aurizon are offering A$3.4 per share in cash for the company.

Baosteel Resources International currently holds a 19.8% stake in Aquila.

The acquisition is in line with Baosteel Resources International's strategy of building a leading global resource business.