Update on Chinese minerals companies overseas: Kenya, Australia, Russia, Mongolia, Vietnam, North KoPublished by MAC on 2007-06-22
Update on Chinese minerals companies overseas: Kenya, Australia, Russia, Mongolia, Vietnam, North Korea, South Korea, Canada
Kenya: Canadian company, Tiomin, has finalized a deal with China’s Jinchuan Investment, in order to trigger the final take-off of its Kwale titanium mine in eastern Kenya, the most conflict-ridden resource extraction project in the country’s recent history.
Under the deal, Jinchuan - China's largest producer of nickel, cobalt and platinum metals - will invest US$10.9 million in Tiomin, giving Jinchuan a 20%, with an option to increase its interest in to 30 percent within the coming 18 months. According to Mineweb (19 June 2007): “ The finalization of the deal gives Tiomin the zeal to continue developing the… project which has been mired by delays and rising costs.”
Australia: Jinchuan is also, along with Sinosteel, about to commence stake acquisition negotiations with Fox Resources Ltd., an Australian base metals explorer and producer, to increase their mine exploration and development ability, according to a Fox Resources announcement Friday.
Fox Resources currently operates the Radio Hill Mine, a nickel and copper mine, in the West Pilbara region of Western Australia, and is also looking to reopen the West Wundho Copper-Zinc Project as soon as possible.
According to the agreement, Jinchuan will provide both financial and technical support to the West Whundo Copper-Zinc Project. Comments Interfax China Metals: “In addition to long-term iron ore and copper concentrate supply contracts, an increasing number of Chinese companies, such as Jinchuan, have turned to purchasing stakes in the early stages of mining projects in order to secure supplies.”
Jinchuan has also acquired an 11.03 % stake in Allegiance Mining NL for the Avebury Nickel Project in Tasmania.
Meanwhile, Anshan Iron and Steel Group Corporation (Angang) has purchased a 12.94 percent stake in Gindalbie Metals Ltd., a Western Australian iron ore group and Yunnan Tin Group has purchased a 5 percent stake in Australian-listed Metallica Minerals Ltd., in order to gain access to the company's nickel projects in Queensland. [source: Interfax China Metals, 22 June 2007]
Russia, Mongolia, Vietnam, North Korea, South Korea, Canada: Longxing International Resource Development Group is currently carrying out feasibility studies on molybdenum, manganese and chrome mines in Siberia
The projects currently under consideration are still in the feasibility study stage, according to Longxing, while the group is also investigating potential mining projects in Mongolia, Vietnam, the DPRK, South Korea and Canada, where feasibility studies are currently underwad.
The company has already set up a joint venture with Zijin Mining Group to develop the Kyzyl-Tashtygskoe lead-zinc mine in the Russian republic of Tuva, according to Zhao. Longxing Group was set up by the Heilongjiang Commerce Bureau, the Heilongjiang Land and Resource Bureau and the China Development Bank in June 2005 with a registered capital of RMB 20.27 billion ($2.66 billion).