Ausi Blog

Chinalco investment in Rio Tinto

February 12th, 2008

Minister Ferguson met with Chinalco President, Mr Xiao Yaqing, to discuss the recently announced investment in Rio Tinto Plc. The Government has also had discussions with BHPBilliton and with the Rio Tinto Group in relation to their possible merger.

“As significant contributors to Australia’s economic wealth, the Government has a great interest in the future of BHPBilliton and Rio Tinto.” Mr Ferguson said.

Mr Ferguson said: “The Government welcomes foreign investment in Australian companies and I note the benefits that will flow to Australia from further investment in our resources sector.”

The Chinalco and Alcoa investment comes at a time of substantial consolidation in the resources sector. Mr Ferguson noted that Chinalco and Alcoa have made a voluntary submission to the Foreign Investment Review Board and said: “The Government is obliged under foreign investment rules to make determinations on the basis of the national interest.”

Entry Filed under: Australia Blog