China’s Long March to Grab Australia’s Mineral Wealth

It has begun! The takeover of Australia’s Mineral Wealth. RIO is about to sell Australia down the river to prop up its bad debts and bad decisions.

Thank god it looks like the Australian Press are showing some nationalistic fervour.

On the face of it RIO is about to sell 20% of itself to Chinalco. The only problem is it seems Chinalco is getting to chose the best bits. The bits that will return much wealth to Australia in the coming years once we are through the current financial crisis.

The Sydney Morning Herald had an excellent article in the Business Day section on Thursday. In the article suitably entitled, “The Dragon Set To Devour RIO“, It tells us that the state owned (don’t forget that)  Chinalco is run by Xiao Yaqing and is in the red due partly to depressed aluminium prices.

So Xiao doesn’t have the money to pay RIO the estimated $30Bn AU. He’s already down from $14Bn to about $5Bn on his earlier investment in RIO too. Not to worry though because,

“…his old friend Chen Yuan, son of Chairman Mao’s top economic planner, Chen Yun, could provide anywhere up to $US20 billion ($30 billion) from the vaults of the China Development Bank.”

For China Development Bank you can read Communist Bank. Although some would have us believe,

“I imagine an opposition could make the argument ‘how can we let this communist country take our prized assets’ – forgetting China has not been communist for years,” said Greg Anderson, a former businessman and now PhD candidate researching China corporate behaviour at the University of California, Los Angeles.”

UCLA is the place where such crooked thinking takes root.

China has not been communist for years! Tell that to all those arrested before and during the Olympic Games. Some were arrest after entering a Protest Park set up for them to protest whilst the Games were on!

Here we have a financially strapped government owned company being given money from the state to purchase very valuable Australian assets. It is my understanding mining companies are given licenses to mine. These licenses should be withdrawn.

Chinalco have stated they will still pay retail pricing for the ore. But I didn’t see anything about any plans for China to continue to buy from BHP. It will not be in their economic interest to pay retail to BHP when they can grow RIO to meet their needs and the profits can stay with them.

To me it is the thin end of the wedge. A strategy that could weaken BHP and make it vulnerable too.

Communism needs control and cannot survive in a FREE market. Control RIO and then spend some of the $14 Trillion in their communist, I mean development bank to destroy BHP. It seems a good idea to me if I were a communist.

Communism supported “limited” capitalism as long as then end justifies the means which is control of the mineral wealth of Australia first. It won’t stop there.

Let’s hope our Labour Government sees it for what it is, an attempt to get control of the iron ore industry and a grab for Australia’s mineral wealth too, all in the national interest of China.

If they don’t stop it the effect on our stock market and the damage to our future wealth could be enormous.

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