[miningmx.com] — A WikiLeaks cable has revealed that mining giant BHP Billiton tried to sabotage a $21bn deal between rival miner Rio Tinto and China’s state-owned aluminium corporation, Chinalco, according Australian news service ABC News.
The cables sent from Australia’s Federal Treasurer Wayne Swan’s chief of staff to US officials describe how BHP “played its cards with consummate skill” in lobbying the Government to delay a decision on a deal between Rio Tinto and Chinalco, stated the report.
The cable said: ”Having worked hard to torpedo the Rio-Chinalco deal, BHP believes that it has scored a major victory.”
The revelation will embarrass BHP, which has refused to acknowledge any behind the scenes role in scuttling the deal.
In June last year, the Chinese bid to increase its investment in Rio Tinto to 18% collapsed and Rio immediately announced a joint venture with BHP Billiton to combine their Western Australian iron ore operations.
The cable said Rio’s rejection of what would have been China’s biggest foreign investment spared the Australian government having to make a tough decision on whether to approve the proposal.
But embassy officials in Canberra noted it left former Prime Minister Kevin Rudd having to deal with “an unhappy China”, ABC said.
