Australian Broadcasting Corporation Broadcast: 02/05/2011 Reporter: Minsi Chung
China is said to be looking at how it can exert more control over iron ore imports, including from Australia.
Transcript
TICKY FULLERTON, PRESENTER: China is said to be looking again at how it can exert more control over iron ore imports, reducing the country's reliance on the big foreign mining companies, notably those from Australia.
But far from causing concern, some Australian companies see the plan to break the big miners' monopoly as an opportunity for closer ties with China, especially in the form of joint investments.
Minsi Chung reporting.
MINSI CHUNG, REPORTER: China buys almost half of the world's iron ore and there are reports it wants to increase foreign investment to try to control 40 per cent of its imports.
PETER STRACHAN, ANALYST: Firstly, they can get these products when they want them, and they want secondly to be sure that they can get them at a price which makes sense to them. They don't want to be in a position where they've got three major suppliers dictating the price to them.
MINSI CHUNG: Mr Strachan thinks China can reach its target by 2017.
Chinese investment in WA iron ore projects include Gindalbie Metals' Carrara iron ore project. Australian industry believes such investment should be encouraged or Australia could be left behind.
DUNCAN CALDER, AUSTRALIA CHINA BUSINESS COUNCIL: China's not going to turn away from Australia, but we may get less than we might otherwise get, a smaller share of the pie, if you like, if we do not have close relationships with China and we don't make it a level playing field for them to invest here in Australia.
MINSI CHUNG: Neither are there worries that a bigger Chinese presence will affect Australian miners' ability to sell to China, one of their main customers.
DAMIEN CALLACHOR, CHAMBER OF MINERALS AND ENERGY: It's important to note that while China is growing as a commodity market for WA companies, it's by no means taking over everything.
MINSI CHUNG: The industry believes China's move could lead to more opportunities for joint investment with Australia overseas, such as Rio Tinto and Chinalco in Guinea and Sundance Resources in Cameroon.
BHP Billiton has also hinted it could do the same.
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