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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (17477)	4/9/2008 11:13:21 PM
From: LoneClone	Read Replies (1) \| Respond to of 194541

China Eyeing BHP Buy-in to Block Rio Merger By Ginger Ding 09 Apr 2008 at 10:42 AM GMT-04:00 resourceinvestor.com SHANGHAI (Interfax-China) -- Reports that China may soon move to acquire stake in Australian mining giant BHP Billiton [NYSE:BHP; LSE:BLT; ASX:BHP] on order to block a merger with Rio Tinto [NYSE:RTP; LSE:RIO; ASX:RIO] caused a buzz in the market today, with insiders revealing that the task will likely fall on a Chinese company already involved in mining projects in Australia. The rumours stemmed from a report in The Australian today which cited an anonymous source in Beijing as saying that China is in the early stages of planning to acquire over a 9% stake in BHP, following a market raid in February where the Aluminum Corporation of China Group (Chinalco) [NYSE:ACH] teamed up with U.S.-based Alcoa [NYSE:AA] to purchase stake in BHP's rival Rio Tinto. Chinese authorities have not yet determined which state-owned financial institution or steel mill may take a leading role in seeking sellers from BHP's diverse shareholder base, the report said. "A move by China to snap up a stake in BHP in an attempt to block a BHP-Rio merger has long been bandied about. By scanning China's current involvement in Australian mining projects, it's not hard to guess at possible candidates for the task," a steel industry source told Interfax. Chinese companies engaged in mining projects in Australia include Sinosteel, with its involvement in the Channar iron ore project, Koolanooka iron ore project and Weld Range iron ore project, Jinchuan Group, with its involvement with Fox Resources' nickel and copper projects, and Baosteel Group, which is involved in the Paraburdoo iron ore project. Baosteel Group officials denied any knowledge of any possible stake participation in BHP when contacted today, but noted that other state-owned companies like Sinosteel and Minmetals may be planning a stake acquisition. BHP's share price on the Australian Stock Exchange closed up 3.74% from the previous trading day at AUD 41.91 ($5.96) today. BHP official were also unavailable for comment when reached by Interfax. The report came as Australia's Prime Minister Kevin Rudd arrived in Beijing today for an official visit to China. "The Australian government is unlikely to intervene much in corporate issues, such as this year's iron ore benchmark negotiations or China acquiring a stake in BHP," the insider said. © Interfax-China 2008. For more intelligence on Chinese metals and mining, contact David Harman in Hong Kong at david.harman@interfax-news.com.