NO.076

The Treasurer has announced that the Government has no foreign investment policy

objections to the proposal by Rio Tinto Limited’s (RTL) to acquire up to 100 per cent

of North Limited’s share capital on condition that:

• if successful in taking control of North, RTL would make no material changes to the

  operation of North Forest Products (NFP) while RTL undertook its strategic review of that

  company;

• RTL will consult with the Tasmanian Government on its intentions for NFP, prior to

  actively marketing NFP and during any sale process and will give the Tasmanian Government

  the opportunity to comment on any future sale; and

• any on sale by RTL of significant North-owned assets to a foreign-owned entity would

  require foreign investment approval.

The Treasurer has received assurances from RTL of its intentions to run combined

corporate office functions of a successfully merged RTL/North Ltd in Melbourne. The

combined corporate office functions will be those of a nature currently carried out in the

Melbourne corporate office of RTL.

The decision by the Treasurer under the Foreign Acquisitions and Takeovers Act 1975

was taken on advice from the Foreign Investment Review Board (FIRB). In examining large or

otherwise significant proposals, the FIRB consults on a strictly confidential basis with

State, Territory and Commonwealth departments and authorities with responsibilities

relevant to the proposed activity of the foreign investor. The proposal is examined

against the background of the Government’s foreign investment policy.

Any other foreign investment proposal in relation to North Limited will be subject to

the same FIRB processes.

CANBERRA

24 July 2000

Contact: Janine Murphy

02 6263 3763