Beijing pushing for iron ore assets
Beijing is poised to take greater control of China’s push to secure Australian iron ore assets, amid speculation that Chinese entities are considering a $22 billion-plus share raid on BHP. China’s top planning agency says its state-owned enterprises needed greater “macro-guidance” to reduce risks and competition, given the spiralling value of iron ore assets, The Australian reports. The National Development and Reform Commission flagged that it wanted a greater say in how state-owned Chinese companies would invest in Australian iron ore miners. Chinese aluminium giant Chinalco highlighted the country’s desire for raw materials when it grabbed a nine per cent stake in BHP takeover target Rio Tinto in a $15 billion share raid, The Australian reports. The move has been seen as a possible attempt to block BHP’s bid because of Chinese concern that the merged titan would have too much power over already spiralling iron ore and coal prices, The Australian reports. China’s GDP grew by 10.6 per cent in the first quarter, underscoring its commodity demand.
