bhp sabotaged chinalco:fmg china's best friend

http://www.abc.net.au/news/2010-12-11/bhp-tried-to-sabotage-mining-deal-wikileaks/2370914

As the FMG situation evolves (which has a broad impact of the rest of the Pilbara juniors not yet apparent), China must reflect on the harm to her that lurks if FMG is undermined !

Read on....

BHP tried to sabotage mining deal: WikiLeaks

A WikiLeaks cable has revealed that mining giant BHP Billiton tried to sabotage a $21 billion deal between rival miner Rio Tinto and China's state-owned aluminium corporation, Chinalco.

The cables sent from Federal Treasurer Wayne Swan's chief of staff to US officials describe how BHP "played its cards with consummate skill" in lobbying the Government to delay a decision on a deal between Rio Tinto and Chinalco.

The cable said: ''Having worked hard to torpedo the Rio-Chinalco deal, BHP believes that it has scored a major victory.''

The revelation will embarrass BHP, which has refused to acknowledge any behind the scenes role in scuttling the deal.

BHP is refusing to comment on the cable, with a spokesman saying the company had nothing to say.

In June last year, the Chinese bid to increase its investment in Rio Tinto to 18 per cent collapsed and Rio immediately announced a joint venture with BHP Billiton to combine their Western Australian iron ore operations.

The cable confirms an account by the Treasury's former top China economist, Stephen Joske, who last year said BHP chairman Don Argus and other BHP executives targeted former prime minister Kevin Rudd, Mr Swan, Resources Minister Martin Ferguson and their advisers over Chinalco's bid.

The cable said Rio's rejection of what would have been China's biggest foreign investment spared the Government having to make a tough decision on whether to approve the proposal.

But embassy officials in Canberra noted it left Mr Rudd having to deal with "an unhappy China".