Thursday, September 17, 2009

China Eyes Philippine Mining Projects

With China’s economy again showing signs of robust growth, Beijing is now encouraging Chinese firms to aggressively pursue mining projects in the Philippines to support its projected hike in demand for minerals and metals, Zhengping Wu, economic and commercial counselor of the Chinese Embassy in Manila, said.

Taking the cue from their government, Chinese companies have started to show renewed interest for mining projects in the Philippines, with Jinchuan Group Ltd. reportedly resuming talks with Philnico Industrial Corp. for the reopening of the Nonoc nickel mines. Related story in “Regions,”

“I heard they are now starting to resume [talks]. I hope that discussions at the corporate level will be successful. The demand for nickel in China is there. But this is a business decision rather than political,” Wu said at the Mining Philippines 2009 Conference and Exhibition at the Sofitel Hotel in Pasay City on Wednesday.

Wu said the Nonoc mine is one of the important projects discussed by the Philippines and China at the ministerial level.

Jinchuan and Philnico were close to signing a multibillion-dollar deal years back but the talks were stalled after the Chinese firm reportedly dilly-dallied.

Besides Nonoc, Jinchuan is also interested in acquiring the North Davao Mining Corp. site in Compostela Valley.

Jinchuan is one of the seven companies that prequalified for the bidding of the project along with another Chinese firm China Nonferrous Corp., Asia Alliance, Wellex Petroleum Corp., Century Peak, Mount Sinai and Carascal Nickel Mining Corp., the Philippine Mining Development Corp. disclosed.

Wu said the Zijin Mining Group would also surely get the clearance from Beijing to pursue its deal with Lepanto Consolidated Mining Co. for the acquisition of a 20-percent stake in a copper-gold project in Benguet.

Wu said China’s demand for metals and minerals is expected to increase anew to support the country’s infrastructure and industrial requirements.

He said Beijing area alone is constructing 12 railways and 12,000 kilometers of expressway in the next few years.

Being a close neighbour, Wu said the Philippines has been a steady supplier of minerals to China. For instance, 55 percent of China’s nickel-ore importation came from the Philippines.

With this, Wu said Chinese investors need to forge long-term and strategic partnerships with mining companies in the Philippines.

The two governments, meanwhile, should help in facilitating win-win arrangements for their private sectors, he said.

Wu added that Beijing wants Chinese companies to establish operations in the Philippines from the upstream to the downstream manufacturing sectors to also help in generating employment and revenues here.

Source: Business Mirror

No comments: