DumptyI think that something like 50% of the assets of BHP and...

Dumpty

I think that something like 50% of the assets of BHP and RIO are based in Australia. The assests in Africa can very easily be lost due to instability. The assets in USA/Canada are very significant and its unlikely that the USA will simply allow a t/o of them (not so sure about Canada. The assets in South America (Chile is the big one I think) will not simply by allowed to be transferred by thier government without some sort of extra taxes.

Its really the Australian assets that the Chinese are after, because they will also get LNG and possibly oil from BHP, in addition to bauxite, nickel, coal, uranium etc. Heaps of prime exploration acreage as well.

These are long life assets and their value can not be included in the share price which only reflects a 10-15 PE ratio (such is capitalism). We are not dealing with capitalists, China is simply adding to its empire (already has Tibet, parts of Mongolia, Manchuria etc where they have simply moved in their own people). People in the surrounding countries are terrified of China, and get really bad reports of the treatment of their people under Chinese control.

loki