China is being welcomed as a saviour for a growing number of cash-strapped junior Australian mining companies, in a reversal of the wary reception that greeted many of the country's state-backed enterprises during the mining boom years.

Chinese enterprises have in recent weeks provided or agreed to back equity fund raisings for a handful of companies, including Gindalbie Metals, which is set to receive A$162m ($107m) via a share placement to AnSteel, the Chinese steel group. It has also won conditional approval from China Development Bank to borrow up to $1.2bn for a Western Australian iron ore project.