Despite new tax Chinese companies still optimistic on acquiring Australian mining assets

Aurstralia's recently-introduced 40-per cent mining tax does not seem to have proved a deterrant to Chinese companies from contemplating further acquisitions in the country.

The China Daily reported that the country's largest iron ore trader Sinosteel and China's fourth-largest steelmaker Anshan Iron and Steel Corp said they are willing to continue to invest in Australia, although that nation's "super tax" will definitely affect the companies' earnings.

However, with the rising cost of iron ore, Chinese companies are still considering acquiring overseas investment, especoialy in resource-rich Australia.

Many large Chinese companies like iron ore trader Sinosteel and fourth-largest steelmaker Anshan Iron and Steel Corp are still optimistic of continuing their investment in Australia, inspite of Australia's "super tax" but confirm that it will definitely have an effect on the companies' earnings.

"We are reviewing how the tax will impact our companies, and undoubtedly, it will affect costs and profits in our local projects," said Huang Tianwen, Sinosteel president on Monday at a conference in Beijing.

"But from a long-term perspective we are still committed to exploring more overseas resources."

''The company is evaluating and analysing the impact of a 40-per cent tax on the Australian mining industry, but the company will continue to invest in the country,'' said Bai Jingpu, vice-president of Anshan Steel.