Neil Diamond sings a catchy song you might know. “On the boats and on the planes, they’re comin’ to America.” But it should be changed. They’re coming to Australia. Who are they?
“The world’s largest aluminium producer is poised to expand its presence in Queensland,” reports James McCullough in the Courier Mail. “Russia-based Rusal, which already owns a 20 per cent stake in Gladstone’s Queensland Alumina (ASX: QAL), is actively investigating establishing a refinery and smelter in the state as part of its stated expansion plans.”
While the credit crisis unfolds, long-term strategic investors are accumulating real assets. We would classify Russia and China as long- term strategic investors, keenly interested in Aussie resources. And if local firms lack the capital to bring production to market quickly, the foreigners are obviously eager to help, in exchange for equity.
Rusal’s move comes “As Russian companies actively increase their presence in Australia…Russian steel giant Magnitogorsk Iron and Steel works notifying the Federal Government this week of plans to take a $1.5 billion stake in Fortesuce Metals Group.” Russian Agriculture Minister Alexei Gordeyev told a Brisbane audience, “We would say that today, Australia is becoming for us a closer and more familiar region.”
Note to bottleshops: buy more vodka.
Markets and Money