Australia PM: Rio-Chinalco Decision A Commercial Matter
June 05 2009 - 12:50AM
Dow Jones News
Australian Prime Minister Kevin Rudd said Friday that Rio Tinto
Ltd.'s (RTP) decision to end its US$19.5 billion alliance with
Aluminum Corp. of China, or Chinalco, in favor of a rights issue
and iron ore joint venture with BHP Billiton Ltd. (BHP.AU) is a
"commercial matter".
Any proposal between Rio and BHP will be "very likely" to
require further consideration by the Foreign Investment Review
Board, Rudd told reporters.
"The government will take the same national interest approach
when a future proposal is put before it, whether it involves BHP or
any other applicant," he said.
Chinalco "has a range of other interests" in Australia beyond
the Rio deal, Rudd said. The prime minister added that he and other
ministers are meeting with Chinalco's president in Canberra later
Friday.
Rudd reiterated that his government "welcomes" Chinese
investment in Australia.
-By Rachel Pannett, Dow Jones Newswires; 61-2-6208-0901;
rachel.pannett@dowjones.com