2 Jun 2010

China's investment in Australia not daunted by 40% tax

Chinese steel industry mogul Song Yuangang said that those companies primarily interested in securing raw materials long term would still find Australia attractive.
Amid a flurry of fresh Chinese investment in Australian projects this week, Mr Song said he was undaunted by the prospect of the 40 per cent tax as long as it was applied equally to all investors in the mining industry.
He was still keen for his company, Sichuan Taifeng, to take a 19.9 per cent stake in Perth-based miner IMX Resources as well as a 50 per cent stake in the company's Cairn Hill iron ore, gold and copper project in South Australia.
"We like to invest in Australia because the investment environment is very good, the society is very stable and the resources are very rich," Mr Song said during an interview in Perth.
West Australian Premier Colin Barnett predicted last week that China Inc would continue to invest in Australian projects despite the lower returns on offer under the new tax regime, because of its desire for long-term resources security.
Typical feverish construction underway in China, its not slowing down.

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