A debt ridden monster (Rio Tinto) gets offered a lifeline from Chinalco (Aluminum Corp. of China) to continue feeding into the biggest commodity consumption market on the planet, China.
Still the spectra of protectionism has creeped in killing off common sense. Your biggest customer offers a direct investment, especially in a time when commodity markets got hammered. And you play hardball? China wants a cheap deal and they should be offered it, the AUD is too high, Australia's Terms of Trade on exports have collapsed (-11%) and Rio Tino forms a cartel with BHP... yes expect downsizing, in fact you can bet on it that there will be a lot more job losses. Fuck the shareholders they are clueless. As the USD sinks the AUD will be pushed higher thus effecting Australia's export recovery.
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