. Earth Science News .
Australia delays call on Chinalco, Rio Tinto deal

China plans more trade, investment missions abroad: govt
China plans to send several purchasing and investment missions abroad this year, following two recent trips that signed billions of dollars in deals, the government said Monday. "Given the current situation, promoting further investment exchanges with other countries is an important measure to help revive the global economy," commerce ministry spokesman Yao Jian told reporters. "We will send out more technology cooperation, trade and investment missions this year." He said the teams would aim to buy green technologies, while also seeking out overseas investment targets and attracting foreign investment to China. China this month sent a high-level business mission to explore acquisition targets in Switzerland, Germany, Britain and Spain. The mission followed another delegation sent to the four countries in February charged with buying high-technology equipment. That trip netted more than 13 billion dollars in deals. Yao said destinations of future missions this year would probably include China's major trading partners such as Europe, the United States, Japan and Southeast Asia.
by Staff Writers
Sydney (AFP) March 16, 2009
Australia's government Monday delayed a decision on whether to approve a 19.5 billion US dollar Chinese investment in mining giant Rio Tinto amid growing concern over foreign ownership in the key sector.

A review of the proposed investment by Chinese state-owned aluminium firm Chicalco, which would mark China's largest-ever foreign investment, was extended by 90 days to allow further scrutiny of the deal, the Treasury said.

The delay, which came as the initial 30-day review period closed, would "enable due consideration" of the deal, Patrick Colmer, general manager of the Treasury's foreign investment and trade policy division, said in a statement.

Chinalco wants an 18 percent stake in the Anglo-Australian mining giant Rio Tinto but needs the approval of the Treasury, which is being advised by Australia's Foreign Investment Review Board, for the deal to go ahead.

The delay in making the decision had been widely anticipated as Canberra struggles over whether to approve or reject the deal.

The transaction would give debt-laden Rio Tinto a much-needed cash injection but it would see a state-backed entity from a key minerals customer, China, boost its stake in the critical sector.

Mining analyst Stephen Bartrop said the decision would be a difficult and sensitive one for the investment review board.

"The government wants to appease the Chinese but at the same time it doesn't want to give away undue influence over Australian assets," he told the Australian Broadcasting Corporation (ABC).

Chinalco announced the proposed investment in February but the effects of the deepening economic crisis and falling resources prices have focused closer attention on foreign, notably Chinese, investments in the sector.

The investment review board is considering several proposed Chinese investments in Australian resource groups, including Minmetals Non-ferrous Metals Company's (Minmetals) 2.6-billion-dollar (1.69-billion US) planned takeover of OZ Minerals Ltd.

Politicians have expressed disquiet about the Rio Tinto deal and some institutional shareholders are angry that their holdings would be diluted by the issue of stock to the Chinese group.

A major Rio Tinto shareholder, Australian Foundation Investment Company Ltd. (AFIC), on Monday expressed deep concern over Chinalco's planned investment.

It said the deal could raise potential conflicts of interest over investment decisions as Chinalco is backed by a government that is both a customer and competitor of Rio Tinto.

"We are deeply concerned about Chinalco becoming involved with the running of the business," the investment group said in a presentation to shareholders.

The deal, which has won the support of the Rio Tinto board, would allow Chinalco to appoint two new non-executive board members to the board.

Rio would use the cash injection to help lower the massive 38 billion US dollar debt it ran up by buying Canadian aluminium producer Alcan Inc. in 2007 as the global economy and demand for minerals slows.

Neither Rio Tinto nor a spokesman for Australian Treasurer Wayne Swan were available for comment on the delay.

But Constellation Capital Manager find manager Peter Chilton said the extension of the review was not unusual and that the Chinalco offer was the best available in a time of crisis and very tight credit.

"The Australian government would clearly recognise this is an important deal and has to be considered very fully," he told the ABC.

"But the extension by 90 days is just normal course of business. I don't think it necessarily means the government thinks this is more serious than any other particular deal that might be contemplated."

-- Dow Jones Newswires contributed to this report --

Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
Global Trade News



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


US trade gap shrinks to 2002 low, swells with China
Washington (AFP) March 13, 2009
The weak global economy sent the US trade deficit to a six-year low in January amid plunging trade volumes, but the politically sensitive deficit with China widened, data showed Friday.







  • Lessons From Hurricane Rita Not Practiced During Ike
  • Main Federal Disaster Relief Law Has Fallen Behind Modern Threat Levels
  • Indonesian mud victims demand compensation
  • Building collapse kills 11 China rail workers: state media

  • Gore optimistic for new climate deal in Copenhagen
  • Carbon Sinks Losing The Battle With Rising Emissions
  • CSIRO Takes Kitchen Table Climate Change Talk Global
  • Czech minister slams president over climate change

  • Satellite Spies On Tree-Eating Bugs
  • CALIPSO Finds Smoke At High Altitudes Down Under
  • NASA Launches Eyes On The Earth 3-D
  • Satellites track leaf beetle infestation

  • Nigerian militants attempt attack on oil facility: army
  • Scientists aim to replicate the sun
  • China defends Spratlys sea patrol
  • Crisis a chance to tackle climate change, create green jobs

  • Malaria Immunity Trigger Found For Multiple Mosquito Species
  • Better drugs encouraging AIDS complacency: Nobel doctor
  • Hong Kong bird tests positive for H5N1
  • Hong Kong bird tests positive for H5N1

  • Protein Big Bang
  • Tropical Lizards Can't Take The Heat Of Climate Warming
  • Environmental group defends Canada's seal hunt
  • Animal-smuggling bust nets 72 people in Brazil

  • Oil spill ship's owners misled us: Australian authorities
  • Australian oil spill '10 times worse' than thought: official
  • Yellowstone Alga Detoxifies Arsenic
  • Chinese plastic bag hero takes campaign to parliament

  • Mind-Reading Experiment Highlights How Brain Records Memories
  • 'Peking Man' 200,000 years older than thought: study
  • Girl has six organs removed in surgery
  • Swedish chimp plans ahead for attacks

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2007 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement