Clive Palmer says Australia “racist” towards China

Mining magnate Clive Palmer has labelled Australia “outstandingly racist” claiming they are slowing down Chinese growth and damaging investment.

He made the accusations when speaking in Hong Kong at the official launch of his Resourcehouse mining venture, The Australian reports.

The venture will pave the way for future acquisitions on behalf of the Chinese government at different locations around the world.

ResourceHouse’s initial public offering was $2.9 billion yesterday and Palmer said the venture aims to bring major development projects from around the world into the company to expand on its existing coal and iron ore interests in Australia.

He believes Chinese investors are being discriminated against, pointing towards the unsuccessful offers for US oil company Unocal and resources from Rio Tinto.

He says these incidents have produced an opportunity for his company to acquire and develop mines on China’s behalf.

“The Australian government has racially discriminated against (China) and stopped them from investing in Australia," Palmer said.

"They’ve brought in things like the Foreign Investment Review Board in Australia, which is an outstandingly racist legislation designed to slow down Chinese growth, and it’s a national disgrace.

“The difference with this company is that it doesn’t have Chinese government ownership.

“It has a small amount of (government) ownership, less than the allowed 15 per cent through FIRB, so we can go across the world buying resources, securing them for China, and ensuring there are long-term off-takes to give them the security of resource.

"China has never, ever wanted to dominate other countries or take control of what they’re doing. All they’ve wanted to do is secure a stable supply of resources for their people so they can continue to grow."

Palmer said Resourcehouse has received "a very good response" in the US and Europe and the group intends to continue with its initial plans.

The company’s plans to expand will be secondary to its initial plans in Australia.

On top of the list is the $8bn coalmine in Queensland’s Galilee Basin and a $2.7bn magnetite iron ore project in Western Australia.

In December, Palmer announced his plans to source at least 10 per cent of his workforce for a coal development in the Galilee Basin from China.

Image: The Townsville Bulletin

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