Reuters
Mon Apr 6, 2009 7:36am BST

CANBERRA, April 6 (Reuters) - Australians are wary about Chinese investment in local mining companies, a poll said on Monday, as Australia considers a $19.5 billion tie-up between China's Chinalco and miner Rio Tinto Ltd (RIO.AX) (RIO.L).

The poll of 890 people by Canberra-based private firm Essential Research found 57 percent believed Australia should resist Chinese investment in mining companies.

The poll said 25 percent believed Chinese investment should be welcomed because it helps the domestic economy and provides jobs, while 18 percent were undecided.

For a related story on Rio Tinto lining up an $8 billion rights issue if the Chinalco deal is rejected, double click on [ID:nSYD409992]. For full coverage of the Rio-Chinalco deal, see [ID:nSYD423833].

The poll findings reinforce growing anti-China sentiment in Australia, with opposition lawmakers accusing Mandarin-speaking Prime Minister Kevin Rudd of being a "roving ambassador" for China and too close to senior figures in Beijing.

The deal between China's state-owned Chinalco and Rio Tinto is being considered by Australia's foreign investment watchdog, with Treasurer Wayne Swan to make the final decision on national interest grounds. The Greens, independent and some conservative opposition lawmakers have declared their opposition to the Chinalco-Rio deal, saying China would never allow an Australian company to buy a mine in China.

An investment by another state-owned Chinese firm, Minmetals, in Australian miner OZ Minerals (OZL.AX) was rejected on national security grounds, although a revised $1.2 billion bid that addresses the concerns is being reconsidered.

And Swan last week approved a $438 million Chinese investment in iron ore miner Fortescue Metals Group (FMG.AX),

Opposition lawmakers have accused Rudd's Labor of being prepared to "sell the farm", losing control of vital resource assets to resource-hungry China.

Australia's opposition foreign affairs spokeswoman, Julie Bishop, said on Sunday Rudd was doing more overseas to promote China than he was to promote Australian interests.

"We're asking legitimate questions about the government's judgement when it comes to China," Bishop told Australian Broadcasting Corp television. (Reporting by James Grubel)