Australia’s Federal Treasurer urged to rethink Moly Mines’ takeover offer for Gulf Alumina

According to an Aluminium Insider report, Australian government has asked Federal Treasurer Scott Morrison to reject the effort of the Chinese firm intending to acquire Gulf Alumina.

Expressing his doubt about the company’s integrity, Parliament Member for Leichhardt Warren Entsch said, “I have serious concerns about their motives… I will be expressing a very strong objection.”

Ensch is heading a movement to stop Moly Mines from acquiring Gulf Alumina. Owned by Chinese investor Hanlong, Moly Mines is said to have reported many cases of corporate misdemeanour in the recent past and too many red flags were raised which indicate at its dubious functioning. In fact the company has been suspended from trading on the ASX since 2014.



Ensch said he would talk to Morrison and request him not to approve the sale. The rest of the procedure may follow as per rule. “But I would be very surprised, given his consistency in other areas, that he will … support this,” he said.

Morrison’s office, however, was not available to comment on this. “The government does not comment on individual FIRB (Foreign Investment Review Board) cases before the government for decision making,” said a spokesperson.

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Metro Mining, the single biggest shareholder of Gulf’s outstanding stock, has also tendered takeover offers for the latter. “The proposed transaction is subject to many conditions,” said a Metro spokesperson.