Rio's Albanese Says Governments Face `Populist Pressures' on Foreign Bids

Rio Tinto Group, which scrapped a proposed mining joint venture with BHP Billiton Ltd. last month, said governments are coming under “populist pressures” as economies recover from the recession.

Rio, based in London, canceled its proposed iron-ore venture in Australia after objections from regulators in Asia and Europe, and Canada this month rejected BHP’s $40 billion hostile bid for Potash Corp. of Saskatchewan Inc. Those events are less a trend than a sign that governments are “tender” after economies weakened, Rio Chief Executive Officer Tom Albanese said today.

“Governments are susceptible to populist pressures,” Albanese said in response to a question at the Dahlman Rose & Co. Global Metals, Mining & Materials Conference in New York. “In the long term, globalization, being open for commercial opportunities, is probably the long-term trend we should be playing to.”

Marius Kloppers, CEO of Melbourne-based BHP, said yesterday he won’t let failed deals valued at more than $100 billion prevent further takeover attempts.

China’s effort to slow economic growth is a “sensible” long-term strategy to avoid formation of an asset bubble that could burst, Albanese said today.

“I’m reasonably satisfied with the macro policies that China has been undertaking to bring down growth to something closer to that 8- to 9 percent-plus GDP,” Albanese said.