oceanwide, page-68

Iceman,

When the Chinese become the major shareholders, the mine managers and the costumers of the mine, you have to admit there will be inherent conflicts of interests. The interests of the Australian shareholders and the Chinese are not necessarily aligned. The Australian shareholders have an interest in the profitability of the mine, the possible distribution of the profits, and the value of the company's shares on ASX. The Chinese are interested in the product coming from the mine, the cost of production of that product and its sale price.

I think it was Hoots that mentioned GBG in a previous post.
In the case of GBG it is an Australian owned company that owns an approximate ~48% minority interest in an Australian mine through a JV agreement, with the Chinese owning the remainder. Any future profits that this mine may generate are split in proportion to their respective JV interests in the mine. The Australian share of the mine profits are vested in an Australian owned and controlled company. The sale price of the product in this case is also linked to the spot price of the product that the mine produces over life of mine, through the JV agreement. Although the interests of the two parties in this case may not necessarily be aligned the JV agreement acts to protect the interests of the Australian shareholders.

In the possible circumstance where CDU is controlled by Chinese interests there is no underlying JV agreement to protect the interests of the Australian shareholders of CDU.

You mention Australian laws which will protect them.

Say for argument sake the Chinese sell the product of the Rocklands mine to interests in China at a price at the lower end of the market for the product. Will the Australian government step in and intervene? or will the minority Australian shareholders be left to argue for equity in the courts? I think the later is more likely.

Regards
SilentO