|
Anglo American to mine platinum in Sichuan
2004-03-29
China Business Weekly
Anglo American Plc, the global mining giant, will invest US$20 million over the next three to five years to explore platinum mining in Southwest China's Sichuan Province.
The deal is expected to be hammered out in May, according to Hu Siyi, technical manager of the company's Beijing office.
In the meantime, the mining giant is seeking partners in Shannxi, Shanxi and Shandong provinces to examine coal resources in those regions, Hu said.
Tony Trahar, chief executive officer (CEO) of Anglo American, said last week that the firm plans to increase its investment in China, and explore natural resources, including rare materials like gold and diamonds.
"I do not believe China's mineral resources have been fully explored," said Trahar, adding the company could help the country find more minerals with its expertise and advanced technology and equipment.
"China has a huge market and abundant natural resources, which makes us confident about our investment here," Trahar said.
The Chinese Government has made extensive efforts to improve the environment for foreign investment, he noted after his visit to the country.
"Now that China has totally opened mining of gold, diamonds and coal to foreign investors, we are even more determined to invest," Hu said.
The company donated mineral samples of gold, platinum and diamond to the newly-built Geological Museum of China.
The company gave the samples to share its international experience, knowledge and expertise with China, the CEO said.
"We are pleased to see many foreign investors interested in the local market and resources, and the government encourages such international co-operations," said Sun Wensheng, minister of land and resources.
Foreign capital is essential to upgrade the technology and improve management in the sector, he said.
The ministry has made great efforts to improve the investment environment and protect investors' interests, sources indicate.
Major factors that used to turn foreign investors away from China's mining sector -- a lack of necessary legal guidelines and difficulty in collecting geological data -- have been corrected, according to Shou Jiahua, vice-minister of land and resources.
Despite this, some foreign investors still complain that China lacks protection of mining rights.
"The country grants preferential rights rather than absolute rights to foreign explorers when they find mines," said an anonymous insider.
He told China Business Weekly that foreign investors spent millions of dollars on exploring a mine, but lost the mining right when the local government took it over, saying it was important for the whole country.
"A market-oriented mechanism should be introduced to the mining sector that encourages protection of investors," the insider said.
Management guidelines need to be established to balance investors' interests.
Anglo American was established in Johannesburg in 1917 and became a public limited company on the London Stock Exchange in 1999. The company now has capital of US$37 billion, with US$21 billion in annual sales.
It is mainly involved in gold, platinum, diamonds, coal, base and ferrous metals, industrial minerals, and paper manufacturing and packaging.
The company started co-operation with China in the mid-1980s and has invested US$50 million in the country, mainly in exploration, marketing and manufacturing.
The company's total sales to China hit US$800 million last year, driven by platinum, diamond, iron ore and base metal products.
|
.gif){kind=small}
.gif){kind=small}
