Rio Tinto Yancoal

Coal takeover gives China a grip on key port

PM Malcolm Turnbull walks a tightrope as he balances security with a $150bn partnership, says Kylar Loussikian.

By Kylar Loussikian

Chinese government interests could control a major share of the Port of Newcastle, the world’s largest coal terminal, if it’s purchase of Rio Tinto’s Hunter Valley mines is approved.

The Foreign Investment Review Board is scrutinising the proposed $3.3 billion purchase of Coal & Allied by Yancoal, controlled by Yankuang Group – the fourth-largest Chinese government-owned coal company.

As concerns rise that China will have “too much of a grip” over Australia’s key infrastructure, The Saturday Telegraph can reveal that the acquisition would leave Yancoal with ownership of 37 percent of Port Waratah Coal services. That company controls almost all coal exports from Newcastle’s port, which is already half owned by government-owned China Merchants.

Read the full article here.

Originally published in Daily Telegraph.