The long rumored merger between BHP Billiton and Rio Tinto has captured special attention from Chinese steel manufacturers. The two Australia-based companies are now the world's second and third largest mining resource explorers.
On November 19, 2007, the China Iron and Steel Association (CISA) expressed its worry over the merger, fearing it may lead to monopoly in the world iron and steel market. CISA said China and Australia have always maintained good relations with regard to iron ore trades. It hopes that the Chinese steel manufacturers and Australian mining resource explorers can join hands with each other, bring benefits to both sides, and promote stable development of Sino-Australian iron ore trade relations.
Currently, iron ore trades conducted by the world's top three mining resource explorers account for more than 75 percent of the world total. The merger between BHP Billiton and Rio Tinto would exert a more negative impact on the global market since it is already suffering from a concentration of resources. China is now the largest iron ore importer in the world. Of its imported iron ores, 38 percent comes from Australia.
For more details, please read the full story in Chinese. (http://www.cnstock.com/newcjzh/headine/2007-11/20/content_2758778.htm)
(China.org.cn November 20, 2007)
