Mar 25, 2014

Yanzhou walks, taking our foreign investment credibility with it

After successfully lobbying to overturn the conditions of its foreign investment approval, Chinese coal major Yanzhou has abandoned its takeover of Yancoal, Glenn Dyer and Bernard Keane write.

Yesterday’s abandonment by Chinese coal major Yanzhou of its full takeover of its Australian associate, Yancoal Australia, has left a hole in Australia’s credibility on foreign investment regulation.

Yancoal Australia is the old Gloucester Mining but is more accurately seen as the local vehicle for Yanzhou. In 2009, Yanzhou was allowed by the Labor government to acquire Felix Resources, on the basis that it be listed and headquartered locally via Yancoal and sell down its stake in Yancoal to below 70%. In 2012, then-treasurer Wayne Swan gave Yanzhou an extra year to sell down its stake when it picked up Gloucester.

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2 thoughts on “Yanzhou walks, taking our foreign investment credibility with it

  1. paddy

    The thought of all those coal companies being left with stranded assets is good for the soul.
    The sooner the better for all our sakes.

  2. R. Ambrose Raven

    Hockey was desperate to sell out. Messrs (then federal Resources Minister Martin) Ferguson and Gray have bent over backwards to ensure Australia gets as little as possible from the mining “boom”. After the Noalition gained government, Trade Minister Andrew Robb said he wanted to “boost the profits of foreign investors … [and] would cut regulation and taxes”. Not local investors – it was the foreign investors Robb will be looking after. Forgotten that in 2012 Mitch Hooke (CEO of the Minerals Council of Australia since June 2002), declared “it wasn’t necessary for Australians to be sharing in the benefits of the mining boom”?

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