The visit to Australia by the Chinalco president Xiong Weiping to meet with the Foreign Investment Review Board highlights how vitally important it is for Australian interests to be clearly examined by a Senate inquiry, Senator Barnaby Joyce, the Leader of the Nationals in the Senate, said today.
“The Senate Standing Committee on Economics must preside over an inquiry before the Board and the Treasurer rule on this deal that would see the Chinese State-owned Chinalco raise its stake in Rio Tinto,” Senator Joyce said.
“This issue definitely requires a thorough and forensic investigation of the implications and ramifications of the investment by the government of another country in our resource base.
“Rio Tinto wants to raise $19.5 billion from the Chinalco investment but the short-term gain that this might bring to that company must be tempered by the potential for complications to bilateral relations between Australia and China when things turn sour economically.
“In the middle of February I called for a Senate inquiry into foreign ownership of our sovereign wealth and said it would not be a one-off. Since then China’s Minmetals Corp has made a takeover bid for OZ Minerals and Hunan Valin Iron & Steel Group has agreed to buy $1.2 billion worth of shares in Fortescue Metals Group Ltd.
“Mr Xiong has said today that the transaction in no way leads to any control of natural resources in Australia, but if the buyer of the raw materials also owns the mine Australia’s future ability to be supported by a minerals boom is at stake.”