AUSTRALIA has approved a Chinese aluminium company’s purchase of a stake in Rio Tinto, but warned the firm against buying more shares without consent.
Treasurer, Wayne Swan, says he has no objections under Australia’s foreign investment policy with Chinalco’s shareholding interests.
The Chinese aluminium giant has promised to meet conditions set out by the government, vowing not to raise its stake above 14.99% without government approval. It also agreed not to appoint a director to Rio Tinto’s board.
Experts believe Chinalco’s motivations to invest come as a move to protect its steel market.
The company has also made swoops on smaller Australian iron ore miners, prompting the government to scrutinize foreign investments in local mines.
The government says it will decide each case on its merits and the national interest.
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