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Slightly more Australians agree (44%) than disagree (39.5%) that BHP Billiton and Rio Tinto should be able to merge their Iron Ore operations in Western Australia while 16.5% can’t say. These results are according to a special Roy Morgan telephone survey with an Australian wide cross-section of 659 respondents aged 14+ conducted on the nights of January 13/14, 2010.

The survey asked, “In recent months Australia's largest mining companies, BHP Billiton and Rio Tinto, have proposed merging their Iron Ore mining operations in Western Australia to create a joint venture covering all current and future Australian iron ore mining assets of the two companies. In your opinion should BHP Billiton and Rio Tinto be allowed to merge their iron ore mining operations in Western Australia?”

In February and March 2005 Roy Morgan asked a similar question regarding the proposed takeover of WMC Resources by BHP Billiton. The March 16/17, 2005 results showed just 36% of Australians supported the BHP Billiton takeover of WMC Resources while 54% were not in support and 10% couldn’t say.

The proposed merger of the BHP Billiton and Rio Tinto iron ore mining operations is supported by more Australian men (49.5%) than women (39%). While a similar number of men (40.5%) and women (39.5%) oppose the merger. A clear majority in Western Australia (57%) support the merger, followed by other resource rich states South Australia (48.5%) and Queensland (46%). Coming just under the national average was New South Wales (43%). Victoria (38% support; 41% opposed) and Tasmania (39% support; 49% opposed) were the only states where more people oppose than support the merger.

A clear split in support is revealed along party lines with 49% of L-NP supporters in favour of allowing the merger and only 36% opposed compared to 42% of ALP supporters and 45.5% opposed. Greens voters are even more opposed to the merger with just 25.5% in favour compared to 59% opposed.

Respondents were also asked: “Why especially do you say that?"

Those in favour of the merger cited reasons including that “I want to keep it Australian,” “It’s progress for Australia,” and “It’s their choice,” “The separate companies will do a better job together,” “As long as the Chinese don’t buy it,” and “They would be creating jobs for everyone,” “The employment situation will provide more jobs for everyone, more work opportunities.”

Those opposed mentioned worries about competition and monopoly — “It’ll be too big a cartel, too much power,” “I don’t like things being in just a few hands,” “I think it goes against competition,” “The company would be too big,” and “They’re too powerful as a big group. I’d rather see them small rather than a monopoly.”

Gary Morgan says:

“Australians are nearly evenly split with those in support (44%) of a merger between the iron ore operations of BHP Billiton & Rio Tinto in WA, slightly more than those opposed (39.5%).

“The State breakdown of support for the merger shows the state most effected by the merger proposals, Western Australia most in support of the merger (57%), while the southern States of Victoria (38% support and 41% oppose) & Tasmania (38% support and 49% oppose) are the only States where more people oppose the merger than support it.

“People’s political preferences show a clear split between the left and right of politics with 49% of L-NP voters (including 60.5% of National Party supporters) in favour of the merger proposal while a minority of ALP supporters (42%) and only 25.5% of Greens supporters are in favour.

“Comparing the results to earlier Roy Morgan Research survey on the 2005 proposed BHP Billiton takeover of WMC Resources shows that had the ‘high foreign ownership’ of BHP Billiton & Rio Tinto been mentioned as part of the question, it is likely far more Australians would have been against the proposed merger of the iron ore operations of BHP Billiton and Rio Tinto.

“These results suggest there is clearly a political dimension to any decision to allow the merger of the Western Australian iron ore mining operations of BHP Billiton and Rio Tinto — something that has not been widely considered in the Australian community before now.”

“The political ‘sleeper’ for those wanting this merger to go ahead are ‘foreign ownership’ and the sheer size of the combined entities and associated reduction in competition.”

This special telephone Morgan Poll was conducted on the evenings of January 13/14, 2010, with 659 respondents aged 14 and over Australia-wide.

Views on the Proposed Iron Ore Operations Merger between BHP Billiton & Rio Tinto.

Those in favour of the merger of the iron ore operations cited common reasons including that it’ll be good for Australia, rather than allowing either company to be controlled by foreigners, and also good if they’re working together. As well people mentioned that they’re private companies that should be able to do what they want and that it will create more jobs in Australia. Following are some of the comments made by those that support a merger going ahead:

“I want to keep it Australian.” “It’s progress for Australia”

“They’re both Australian companies, so it’s good; they will become stronger and won’t sell out to China.”

“I think it has to be done for Australia.”

“As long as the Chinese don’t buy it.”

“If Rio Tinto is still Australian owned it would be ok, but if the Chinese bought some part of Rio I wouldn’t approve.”

“Because it would make them more efficient, they can share costs.”

“The separate companies will do a better job together.”

“Because if it is under the one company, it will reduce cost and become more efficient.”

“I think it’s free enterprise and they should be able to do what they like.”

“I can’t see a reason why they shouldn’t be able to do it. It’s their own business.”

“It’s their choice.”

“They would be creating jobs for everyone.”

“The employment situation will provide more jobs for everyone, more work opportunities.”

“It’s what we need in this country to bring more employment in and make more jobs.”

Those against the merger were worried about the effect on competition the enlarged company would create and also a perception that the two companies would have too high a concentration of power — a similar theme. Following are some of the comments made by those that are against a merger going ahead:

“It would become a monopoly, creating a lack of competition.”

“Because of the virtual monopoly they will have.”

“It will become too much of a monopoly and that makes me worried.”

“I don’t like things being joined together as one. I think there needs to be competition for things to be fair.”

“Because then they would have a monopoly on the whole lot.”

“I don’t like things being in just a few hands.”

“It will become more of a monopoly and it wouldn’t be good for the economy.”

“I think it goes against competition.”

“This company would be too big and it would become like a monopoly.”

“They will just have their monopoly and there won’t be any competition.”

“The company would be too big.”

“One company with that much power is too much. There has got to be some competition.”

“Because it’s going to make one big monopoly out of iron ore and there should be competition.”

“The company will be too big and they’ll take most of Australia.”

“They’re too powerful as a big group. I’d rather see them small rather than a monopoly.”

“Because they’d end up with too much power, too much money and too much say in the market.”

“It would give them too much power.”

“Too big a cartel. Too much power.”

“Sounds like too much power for one company.”

Demographic Analysis of Result — BHP Billiton & Rio Tinto Iron Ore Merger

Respondents were asked, “In your opinion should BHP Billiton and Rio Tinto be allowed to merge their iron ore mining operations in Western Australia?”

	Total all people aged 14+	Analysis by States & Regions
	Jan 13/14, 2010	Capital Cities	Country Areas	NSW	Vic	Qld	SA	WA	Tas#
	%	%	%	%	%	%	%	%	%
Yes, should	44	42.5	47.5	43	38	46	48.5	57	38
No, should not	39.5	39.5	40	40	41	44	34	31.5	49
Can’t say	16.5	18	12.5	17	21	10	17.5	11.5	13
Total	100	100	100	100	100	100	100	100	100

#Sample sizes under 50 should be treated with caution.

	Total all people aged 14+	Analysis by Sex and Age
	Jan 13/14, 2010	Men	Women	14-17	18-24	25-34	35-49	50+
	%	%	%	%	%	%	%	%
Yes, should	44	49.5	39	45	49	46.5	44	42
No, should not	39.5	40.5	39	39	31	40.5	41	41
Can’t say	16.5	10	22	16	20	13	15	17
Total	100	100	100	100	100	100	100	100

	Total all people aged 14+	Analysis by Voting Preference
	Jan 13/14, 2010	ALP	L-NP	Lib	Nat#	Green#	FF#	Other#	Can’t Say#
	%	%	%	%	%	%	%	%	%
Yes, should	44	42	49	48	60.5	25.5	24.5	51.5	39.5
No, should not	39.5	45.5	36	35.5	39.5	59	66.5	37.5	39.5
Can’t say	16.5	12.5	15	16.5	0	15.5	9	11	21
Total	100	100	100	100	100	100	100	100	100

#Sample sizes under 50 should be treated with caution.

In February & March 2005 Roy Morgan asked about the proposed BHP Billiton and WMC merger: “The world’s largest known uranium source, Olympic Dam, is located in South Australia. It is now operated by Australian-owned mining company WMC Resources. BHP Billiton, which has a significant overseas ownership, has made a takeover offer of $7.85 a share. The Board of WMC Resources has recommended its shareholders accept the offer.”

Respondents were asked: “In your opinion should BHP Billiton be allowed to takeover WMC Resources, or not?”

	BHPB/ WMC		BHPB/ Rio
	Feb 16/17, 2005	Mar 16/17, 2005	Jan 13/14, 2010
	%	%	%
Yes, should	30	36	44
No, should not	56	54	39.5
Can’t say	14	10	16.5
Total	100	100	100

The Morgan Poll is conducted by the ONLY Australian member of the Gallup International Association.

No other public opinion poll taken in Australia has this qualification.

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