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Australia and China in £6bn of mining deals

AUSTRALIA and China signed ten commercial deals worth more than $8.8bn (£6bn) yesterday, strengthening the country’s ties in the mining and energy sectors.

The agreements see state-owned China Development Bank undertaking to provide financing for several major mining projects, including a $1.2bn loan for an iron ore development.

The deals were agreed in Canberra as part of Chinese vice president Xi Xinping’s state visit.

Australian Prime Minister Kevin Rudd said the deals highlighted the strength of international investment in the country, despite plans for a 40 per cent mining levy.

“It is important to separate the facts of what’s going on from some of the fear that is being pushed by some companies who object to paying a bit more tax,” said Rudd.