DEALTALK-China's Australian M&A feast may slow but far from over

(For more Reuters Dealtalks, click [DEALTALK/])

* China to pause, not halt, Australia M&A drive

* China buys seen likely passing govt review with conditions

* Key factor for future deals is whether bids are hostile

By Sonali Paul and Joseph Chaney

MELBOURNE/HONG KONG, March 9 (Reuters) - China's plans to gobble up more Australian resource companies may be slowed while it waits for Canberra's decisions on three pending deals, but more bids will likely follow if the deals are approved.

Australia's government said last week it will take time to make up its mind about Chinese state-owned Chinalco's $19.5 billion investment in mining giant Rio Tinto (RIO.AX).

Two other deals are also awaiting decisions from the Foreign Investment Review Board: Minmetals' $1.7 billion rescue bid for OZ Minerals Ltd (OZL.AX) and Hunan Valin Iron and Steel Group's $768 million plan to buy a 16.5 percent stake in iron ore miner Fortescue (FMG.AX).

The key factor working in favour of the three deals is that they are not hostile -- the targets are either distressed or looking to shore up cash reserves. That has helped offset concerns that China is picking up prime assets on the cheap.