Resources giant Rio Tinto says it's comfortable with its dependence on China but warns that investors have become more apprehensive about investing in Australia.
In his first public address in Australia this year, chairman Jan Du Plessis said he was not concerned about the amount of emphasis his company was putting on China, despite the recent slowdown in growth.
"Yes we are very dependent on China," Mr Du Plessis told a meeting of business leaders in Sydney.
"Actually, on balance, if I had to pick a country in the world to be dependent on I might have chosen China."
He said around 30 per cent of the group's revenue came from China.
"There will be volatility, but in 10 and 15 and 20 years time, China is going to be an unbelievable place, so there's a dependence there but I think it's going to be fine."
He did express some concern about regulations being introduced by the Federal Government, such as the carbon tax and the Minerals Resources Rent Tax (MRRT).
"If you go to other capital cities in the world, they do look at Australia with a little more apprehension than they used to," he said.
But he added that controversy surrounding the original mining tax proposals had resulted in insufficient credit being given to a number of good ideas on taxation that were previously floated in the Henry Review.
Rio Tinto would continue to invest heavily in Australia because the the company had tremendous faith in the country, Mr Du Plessis said.
He also said he was not "hung up" about short-term movements in iron-ore prices and emphasised that Australia's skills shortage would need "innovative thinking" from business and government.
"The demand for skilled labour to meet the requirements of a burgeoning energy and resources sector is already straining HR departments and wage budgets across the country," he said.
All the signs indicated that the problem would become more acute and investment in the minerals sector could not be stalled to build a pool of skilled workers.
Maximising training and re-skilling opportunities for those wishing to move into the resources field would be "fundamental" in Australia, as would maintaining mobility in the workforce.
And he weighed into the sensitive area of executive pay, saying the mining industry should be focused more on the long-term incentives which could potentially extend beyond three years.
