Australia Trade Min: Won't Link China Cos' Invest Plans, FTA
March 31 2009 - 2:49AM
Dow Jones News
Australia won't link its review of Chinese companies' recent
plans to invest in Australia's mining companies with free-trade
talks between the two countries, Australia Trade Minister Simon
Crean said Tuesday.
"We are making no such connection," Crean said after meeting
with China Commerce Minister Chen Deming in Beijing Monday.
In recent months, Chinese companies have announced plans to
invest in Australia's mining companies, including Aluminum Corp. of
China's plan to invest US$19.5 billion in Anglo-Australian miner
Rio Tinto PLC (RTP), which would mark the biggest ever overseas
investment by a Chinese company.
Australian Treasurer Wayne Swan Friday blocked China Minmetals
Nonferrous Metals Co.'s planned A$2.6 billion takeover of OZ
Minerals Ltd. (OZL.AU), because the miner's flagship Prominent Hill
operations are in a military zone.
The Australian miner said Tuesday it received a fresh, but
incomplete proposal from China Minmetals, which on completion would
result in the Chinese company acquiring all of OZ Minerals' assets
except for Prominent Hill, the Martabe gold-silver project in
Indonesia, and the company's portfolio of listed assets.
Crean said Swan's decision didn't affect the "atmosphere" of his
meeting with Chen.
"Mr. Chen fully accepts that Australia reserves the rights to
making decisions with regard of national interests," Crean
said.
Crean reiterated that Australia needs a framework for foreign
investment, especially with China, its second-largest trading
partner.
"Given the importance of investment between these two countries,
it is important to look at a new investment framework within an
FTA," he said.
China and Australia held a 13th round of FTA negotiations in
December, but have yet to reach an agreement.
-Juan Chen contributed to this story; Dow Jones Newswires; 8610
6588 5848; juan.chen@dowjones.com