Friday, October 16, 2009

Bulgaria, China Sign $800mn Copper Deal

Bulgaria and China signed a major copper deal Thursday during a visit to Sofia by Chinese Vice-President Xi Jinping who pledged to further boost trade and investment between the two countries.

Aurubis Bulgaria, a subsidiary of German-based Aurubis, Europe's leading copper smelter, signed an 800-million-dollar (536-million-euro) deal with China's largest metals trader China Minmetals.

The deal, to run until 2015, was signed at a ceremony in Sofia attended by Xi, who arrived on a two-day visit to Bulgaria on Thursday, and Bulgarian Prime Minister Boyko Borisov.

Five other contracts were also inked at the ceremony, including another 19-million-dollar (13-million-euro) copper deal with China Nonferrous Metal Mining Group.

Addressing a business forum earlier, Xi hailed the "dynamic development of trade and economic cooperation" between the two countries.

"Bulgaria is now China's most important trading partner on the Balkans," Xi said.

The value of overall trade between the two countries amounts to 1.26 billion dollars, according to data compiled by the economy ministry.

But Bulgaria imports a lot more from China (1.1 billion dollars) than it exports to China (157.2 million dollars), giving it a trade deficit with China of 952.5 million dollars.

Most of Bulgaria's exports to China are copper, aluminium and lead ore.

Xi said the Chinese market was "huge and widely open for Bulgarian products such as nonferrous metals, wine, rose oil and yoghurt."

"I am convinced that with the common steady efforts of our two governments, trade and economic institutions and entrepreneurs, the economic cooperation between China and Bulgaria will receive a new impetus," Xi said.

He pointed to the success of China's investments in the Bulgarian automobile, telecommunications, energy efficiency and environment protection sectors and said that telecoms, tourism, logistics and infrastructure would be possible key sectors for Chinese investment in the future.

Source: AFP

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