Australia Keeps an Eye on Foreign Mine Investment

14 December 2009 (Last Updated December 14th, 2009 18:30)

Australia will continue to scrutinise overseas investment in the mining sector, with a particular focus on transactions that can help investors gain control over production and pricing of major commodities. Australian treasurer Wayne Swan said careful examination of the mining sector wa

Australia will continue to scrutinise overseas investment in the mining sector, with a particular focus on transactions that can help investors gain control over production and pricing of major commodities.

Australian treasurer Wayne Swan said careful examination of the mining sector was clearly decided upon by the ruling Labour Party during discussions on foreign investment, according to Reuters.

Close scrutiny will be used in instances where the investor will purchase the resource that could lead to control over production and pricing.

Any overseas investment in a resource company should permit Australia to remain a dependable supplier to all potential and current trading partners.

Importance will be given to shareholder discipline and business transparency and key companies will be pushed to maintain their listing on stock exchanges.

The decision has created discord in addressing China's huge inward investment.

Australia's Foreign Investment Review Board (FIRB) has been in the middle of a conflict after rejecting and seeking revisions to a few Chinese investments in the mining sector.

FIRB opposed China's Minmetals' proposal to acquire an Australian miner and China Nonferrous Metal Mining's plan to purchase majority stake in Lynas mining company.