NO Chinese companies have been told to withdraw applications to buy into Australian resource firms, the Australian government said yesterday.
This is despite media reports that Canberra was pressuring China to back away from such investment. China's miners and steel makers are looking to buy mining assets in Australia to lock in supplies of raw materials.
"There's been no suggestion that China or any other investor should back off," Resource Minister Martin Ferguson said. "As China makes investments, some will be rejected, some will be changed to meet our national interest test."
A national newspaper, The Australian, reported last Friday that the government was discreetly pressuring the Chinese at high levels to back off and resubmit applications at a later date.
At least 10 Chinese companies have withdrawn foreign investment applications to buy into Australian resource companies after pressure from the Australian government, the newspaper said without citing its sources.
Early in April, China's No. 6 steel maker Shougang Group was rebuked by Australian regulators who judged it was behind two firms that were building up a large stake in Mount Gibson Iron Ore Ltd without making a formal bid.
Shenzhen Zhongjin Lingnan Nonfemet Co Ltd is bidding jointly with Indonesia's PT Aneka Tambang Tbk for Australian miner Herald Resources Ltd and state-owned MCC Mining has applied to buy a A$400 million (US$372 million) iron ore project from Cape Lambert Iron Ore Ltd.
Others include top coal miners China Shenhua Group and China Coal Energy, while Yanzhou Coal Mining Co Ltd aims to buy Australian mines to boost its annual coal capacity there to 10 million metric tons in the next few years.
"China is strategically placing a lot of money in Australia in the resources sector at the moment. Each of those investments will be considered on merit," said Ferguson.
Australia has allowed small mining firms to fall into foreign hands, but has been protective of its corporate giants.
Ferguson said while a rigorous national interest test would be applied to foreign investment applications, Australia was open to foreign investment.