Australia Min: Considers All Foreign Invest On National Interest
June 14 2009 - 10:58PM
Dow Jones News
Australian Resources Minister Martin Ferguson Monday played down
any suggestion that the collapse of a planned US$19.5 billion
alliance between Rio Tinto Ltd. (RTP) and Aluminum Corp. of China,
or Chinalco, will make it easier for the government to approve
smaller deals involving Chinese investment.
Asked if Rio's decision to instead pursue a rights issue and
joint venture with BHP Billiton Ltd. (BHP.AU) removed the most
significant - and therefore controversial - foreign investment
decision before Treasurer Wayne Swan, potentially clearing the way
for smaller deals, Ferguson said Australia's foreign investment
laws are consistent.
"Each application, no matter how big or small, will be
considered on its merits," Ferguson told Dow Jones Newswires on the
sidelines of a Canberra conference.
That includes applying the key foreign investment guidelines,
including a national interest test, he added.
Analysts say the decision by Rio to end its Chinalco alliance
clears the air for the Australian government to give the go-ahead
to other less high-profile Chinese deals.
The Chinalco-Rio deal would have been China's biggest-ever
overseas investment, and raised concerns among some Australian
opposition lawmakers about the potential for Chinalco - also a
major buyer of Australian commodities - to influence prices.
-By Rachel Pannett, Dow Jones Newswires; 61-2-6208-0901; rachel.pannett@dowjones.com