Rio Tinto blames 'difficult governance'
By Denny Thomas |
March 24, 2011, Thursday
|
Print Edition
Print Edition
RIO Tinto's chief executive said increased government involvement in the resources sector is constraining efforts to meet demand across the globe and slammed what he called the "curse of resource nationalism."
CEO Tom Albanese, who is under pressure to give up the company's rights to part of Guinea's giant Simandou iron ore concession, said Rio needs to do a better job of cooperating with governments at a time when the miner is facing pressures of higher taxes and royalties.
"From a Rio Tinto perspective, we have to do a better job on the curse of resource nationalism," Albanese told a packed audience at the Credit Suisse Asia Investment Conference in Hong Kong yesterday.
Albanese said the supply is hampered by a combination of technical and human factors. On the technical side, he said in certain cases resources are in deep and difficult locations in emerging countries.
"Besides technical constraints, we are also seeing human constraints. We are seeing a combination of resource nationalism in some cases," he said, citing "difficult governance" in certain countries.
"And in countries with good governance and infrastructure, you have this very new pattern that is increasingly challenging for our sector of activism of stakeholder engagement," he said.
The fight for natural resources has intensified over the years, leading to some high-profile cross-border takeovers being blocked by governments.
Last year, the Canadian government killed BHP Billiton Ltd's US$39 billion bid for Potash Corp.
Rio, which invested US$680 million in what it said is the world's largest undeveloped iron ore deposit in Guinea, has been in dispute with Guinea over two blocks, which the government gave to BSG Resources.
Last year, Rio also fought the Australian government's planned resource super profits tax.
CEO Tom Albanese, who is under pressure to give up the company's rights to part of Guinea's giant Simandou iron ore concession, said Rio needs to do a better job of cooperating with governments at a time when the miner is facing pressures of higher taxes and royalties.
"From a Rio Tinto perspective, we have to do a better job on the curse of resource nationalism," Albanese told a packed audience at the Credit Suisse Asia Investment Conference in Hong Kong yesterday.
Albanese said the supply is hampered by a combination of technical and human factors. On the technical side, he said in certain cases resources are in deep and difficult locations in emerging countries.
"Besides technical constraints, we are also seeing human constraints. We are seeing a combination of resource nationalism in some cases," he said, citing "difficult governance" in certain countries.
"And in countries with good governance and infrastructure, you have this very new pattern that is increasingly challenging for our sector of activism of stakeholder engagement," he said.
The fight for natural resources has intensified over the years, leading to some high-profile cross-border takeovers being blocked by governments.
Last year, the Canadian government killed BHP Billiton Ltd's US$39 billion bid for Potash Corp.
Rio, which invested US$680 million in what it said is the world's largest undeveloped iron ore deposit in Guinea, has been in dispute with Guinea over two blocks, which the government gave to BSG Resources.
Last year, Rio also fought the Australian government's planned resource super profits tax.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
