China updatePublished by MAC on 2007-03-23
23rd March 2007
Once again, the Chinese regime is seeking to reduce over-supply, pollutiion, and excess energy use, by phasing out small mineral related ventures - this time for lead and zinc.
In a potentially important move, the government's ministry of commerce has said that, while welcoming foreign involvement in certain sectors (including energy conservation and environmental protection), companies which seek investment in high energy consuming and "polluting" industries will be banned.
It's highly doubtful that such a stricture will be applied overseas. New joint ventures were announced last week in mining projects in both Afghanistan and Australia.
Meanwhile, Zijin Mining's attempt to take over Monterrico Metals - a company widely condemned, both inside and outside Peru - has been stalled. Not, however, from any moral considerations. But because Monterrico's main shareholders, the Greater Europe Fund, says the bid isn't high enough.