Telegraph.co.uk reported that BHP Billiton has issued a veiled warning to the Australian government that its natural resources could end up being owned by the Chinese if regulators do not allow the miner to take over Rio Tinto.

Mr Don Argus chairman of BHP Billiton in a plea to authorities to wave the hostile bid through said that unless the company was allowed to remain competitive, Australia could follow Canada, which has seen most of its resource companies snapped up by foreign buyers.

He said that "Many large resource companies, such as BHP Billiton are based in home grown resource positions. Australia's position in the global resource industry is not guaranteed. Our current natural resource champions could fall into the hands of overseas consolidators."

Mr Argus said that overly officious regulation by Australia's competition authorities could stifle growth.

He said that "The world has state owned or state supported players from Russia and China and Brazil and private companies. I do not believe it is in anyone's interests not to have a global countervailing force against state-sponsored resources majors."

He said the Rio plan was on track, adding “We are pleased to have effectively cleared the US competition approvals process and moved into the second phase of the European Commission's process."