Govt welcomes foreign investment, Ferguson says

Submitted 14/04/2009

AAP

The Australian Government welcomes foreign investment and will assess each application on a case-by-case basis, the Minister for Resources and Energy Martin Ferguson says.

"The Australian Government encourages foreign investment and welcomes proposals when they are in our national interest," Mr Ferguson said at the Melbourne Mining Club on Thursday.

Mr Ferguson said the Oz Minerals and Fortescue Metals decisions indicated that the Government would assess cases on individual merit.

The Federal Government approved Chinese steel maker Hunan Valin Iron and Steel Group's plan to lift its stake in Fortescue to 17.55 per cent.

On the other hand, the Government threatened to block Minmetals's attempt to takeover OZ Minerals because of security issues surrounding the inclusion of the Prominent Hill mine in South Australia which lies in the Woomera Prohibited Area weapons testing range.

Minmetals and Oz Minerals have put forward a revised bid.

Rio Tinto is awaiting Australian regulatory approval for a plan by Aluminium Corp of China (Chinalco) to invest $US19.5 billion ($A27.67 billion) in the company.