This is the news i was referring to in my previous post whether...

This is the news i was referring to in my previous post whether or not this was the cause of sdl sp to drop 11%. Uncertainty scares investors.


China shuffle puts deals on hold
BY: MATT CHAMBERS From: The Australian August 29, 2012 12:00AM

MMG's Andrew Michelmore at the Melbourne Mining Club. Picture: Scott Paul Source: The Australian
MINING executives say the coming leadership change in China has stalled decisions at both macro-economic and company levels, resulting in less activity.

A dramatic turnaround is expected when the change is finally made.

China is also not expected to replicate its acquisition spree of the global financial crisis, as financiers and central agencies demand returns on investments.

Speaking in Melbourne yesterday, Andrew Michelmore, the head of Chinese-controlled, Melbourne-based miner MMG, said the leadership change was inhibiting investments.

"What you see in China at the moment is a lull as they sort out the new premier, president, Politburo and the CEOs of the state-owned entities. Until that's settled, any investments going forward won't happen," he said after a speech to the Melbourne Mining Club.

"They will wait until the new group comes in and they drive it."

Hold your nerve, good times to return

Australia in China's Century Conference

The comments were backed up by a senior executive at a major miner, who said his customers were telling him they could make no decisions because of sensitivities around the change. But he said once the changes were made, things were expected to start happening within weeks.

Mr Michelmore said there was talk the leadership change would be put off until March but he was now hearing that it would happen in November.

MMG, which until yesterday was known as Minmetals Resources, was created from the purchase of most of OZ Minerals' assets in a 2009 rescue deal. Since then, the company, which has a market value of about $2 billion, has acquired the Africa-focused Anvil Mining and been trumped by Canadian gold giant Barrick Resources on a bid for Equinox Minerals. Mr Michelmore said activity in China would be more restrained now than during the financial crisis, when China bid hard for global resources.

"In China, there are various companies that have been named for making bad investments and their CEOs are no longer there, and the message is being sent very clearly that if you go and argue for an investment, you have to generate the return," he said. Mr Michelmore would not say whether MMG was interested in the assets of zinc miner Kagara, which went into administration in April.