Shandong Gold Group, China's second-largest producer of the metal by reserves, has won Australian foreign investment approval to buy a 51-percent stake in Focus Minerals Ltd, Reuters reported on Tuesday.

"The Foreign Investment Review Board has advised Shandong Gold that there are no objections to the placement in terms of the government's foreign investment policy," Focus said in a statement on Tuesday.

Shandong Gold will invest $232 million in Focus to buy about 4.5 billion shares in the company.

As the world's second-largest gold producer, Australia is a target for Chinese companies, which have substantial demand for the precious metal.

Many Chinese companies have increased their investments in Australian gold mines, in order to provide a steady stream of gold.