foreshadowed offer unnamed party

The Indicative proposal by the un named party could possibly be China’s Yanzhou Coal or an associated company???

The Yarrabee Open-Cut coal mine owned by Felix Resources is located approximately 40 km North-West of Blackwater in Central Queensland’s Bowen Basin.

China’s Yanzhou Coal has resubmitted its application for approval from the Foreign Investment Review Board for its $3 billion bid for coal miner Felix Resources.

It is possible that the chinese may want access to all reserves in that basin e.g. Blackwater area which includes RCI?

Yanzhou is offering $18 a share cash for Felix, so they could up the bid for RCI if they are hell bent on owning the lot e.g. Blackwater?

Now the other issue is that under new possible FIRB rules, they might reverse the onus of proof and what it will need to be.

e.g. A state-owned entity may need to prove that any sort of takeover is in the public interest. So the assumption could possibly be be that it’s not in the public interest for state-owned companies to make bids.

If this comes abaout, a lot of proposed takeovers by the chinese may grind to a screaming halt?

If the FIRB comes up with this policy it will need to be published and settled soon?

If we’re going to have a different set of rules for state-owned companies and I think we should, we really need to define what those rules are.

If we’re going to have the kind of Chinese investment that we need, the reality is that a lot of it is going to be state-owned, but in my view, the chinese need to conform with Western ways of doing business in western countries, and should probably start privatising some of their comapnies that are attempting to purchase Australian assets with the likes of RCI.

What are the other RCI posters take on this issue?