Just a piece of news yesterday which could have a bearing on what the chinese are thinking re MMX.
Font Size:DecreaseIncreasePrint Page:Print Matt Chambers | September 26, 2009
Article from: The Australian CHINA'S biggest Australian takeover target, the $3.5 billion bid for coalminer Felix Resources, is under a cloud after the Foreign Investment Review Board voiced its preference that foreigners keep their stakes in the nation's resource projects to below 50 per cent.
Analysts say the friendly bid from state-controlled Yanzhou Coal now looks less certain of being approved after FIRB executive director Patrick Colmer told a China investment forum in Sydney on Thursday that the government was much more comfortable with investments in undeveloped projects below 50 per cent and in major producers at below 15 per cent.
It is a position that many had thought the government had held since last year when FIRB capped Sinosteel's potential investment in iron ore miner Murchison Metals at 49.9 per cent.
However, that decision was made after Sinosteel had already acquired Murchison's neighbour, Midwest, and was done partly to maintain diversity of ownership in the region.
Mr Colmer's Thursday presentation was made hours before China Nonferrous Metal Mining Corp (CNMC) pulled out of a $500 million deal to take a controlling stake in rare earths hopeful Lynas.
CNMC walked because FIRB would not approve more than a 49.9 per cent stake and wanted to restrict Chinese board representation to less than half.
MMX Price at posting:
$1.59 Sentiment: Hold Disclosure: Held
