【The Australian]WA Premier signals tough deal on Rio-BHP venture

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WA Premier signals tough deal on Rio-BHP venture      
http://www.theaustralian.news.com.au/business/story/0,28124,25826904-5018066,00.html                                

July 24, 2009               

Article from: The Australian   
                                             
WESTAustralia Premier Colin Barnett has signalled tougher conditions on theproposed iron ore joint venture between Rio Tinto and BHP Billitonafter talking to Chinese steel mills.

AndChinalco, the Chinese company whose $US19.54billion offer for a largerslice of Rio was spurned last month in favour of the deal with BHP,said it was keeping a close watch on developments in the case of fourof Rio's employees.

"We are closely monitoring this deal and, as a metal and mininggroup, Chinalco is closely watching the restructuring of the globalmining industry," Chinalco chairman Xiong Wieping said.

Mr Barnett is against the deal, although he believes it will be asuccess. He said it was among the issues most strongly identified byChinese businesses and politicians during his week-long trip to thecountry to help bolster the relationship that yields billions ofdollars and thousands of jobs for the state each year.

"The Rio/BHP get together is not welcome and that has been made very very clear to me," Mr Barnett said.

"It won't occur as simply as BHP and Rio might currently imagine.

Mr Barnett said he believed the relationship between China and Australia was increasingly being determined by companies.

"But governments have a role," he said."I will be taking a farstronger hand in how the companies relate to their major customers andthe relationships between them."

Mr Barnett said China was a special case and he would make a special effort to assist it.

"They will get personal attention from my office, we want make theeffort to make sure the transition from customer to investor toeconomic partner is done smoothly."