Ann: MINERAL RESOURCES UPDATE McCALLS MINERAL SANDS PROJECT, page-11

Most people don't understand how the Foreign Investment and Takeovers Act 1975 works. I think that there is a real risk that the Chinese seeking to gain control of IMA through board representation requires foreign investment approval by the Treasurer under this legislation. This is because there is a control test in this legislation which is just not just increasing the level of ownership above 20%. However, I suspect that most people are not aware of this because it rarely arises (ie, control usually coincides with increased ownership and not for other reasons like increased board representation).

If someone from IMA monitors comments on this website, I would strongly suggest to them they should investigate this and seek legal advice from someone who knows how the Foreign Investment and Takeovers Act 1975 works. Alternatively ring the Foreign Investment Review Board hotline (see .https://firb.gov.au/) - the person answering the phone will certainly know the answer.

Thanks Pranav1980 because your comments above triggered my memory in respect of the Foreign Investment and Takeovers Act 1975 potentially being a major issue for the Chinese to consider.