PUBLICATION: Toronto Star

DATE: 2004.11.08

SECTION: Letter

PAGE: A19

Unique deal needs careful assessment

No room to wave flag over Noranda

Nov. 6.

While I respect the view of Canada's mining industry executives, I believe their positive assessment of the takeover of Noranda Inc. by the People's Republic of China ignores a number of key points as they relate to the proposed takeover by China Minmetals Corp.

China Minmetals Corp. is a company controlled by the government of the People's Republic of China - it is not a privately run or widely held public company.

The leadership of the Communist party in Beijing sets the company's strategy, direction and priorities. Clearly the People's Republic of China wishes to gain greater control over the commodities it needs to fuel its fast growing economy.

What's in this deal for Canada? Looking at the possible benefits produces some pretty thin gruel. What does China Minmetals bring to the table? What synergies are possible?

This transaction should not be justified on the basis that it flows from the globalization of our world economy.

This acquisition is unique and should be assessed very carefully.

Hon. Roy Cullen, P.C., M.P.
Etobicoke North