China Abandons Congo Copper Smelters
London's Finanical Times has reported that more than 40 Chinese-owned copper smelters in the Democratic Republic of Congo are standing idle after being abandoned at the end of the commodity boom. The paper attributed the comments to Mr Moise Katumbi, the governor of Katanga province.
The newspaper reports that the smelters' owners have fled the country without paying taxes or compensating staff.
do you remember when the chinese reneged on the iron ore contracts??? signs of things to come maybe
Minmetals to shop for more Australia mines: Oz CEO
Sat Feb 21, 2009 9:15pm EST Email | Print | Share| Reprints | Single Page[-] Text [+]
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More Business & Investing News... SYDNEY (Reuters) - Chinese state-owned metals group Minmetals is keen to use its $1.7 billion acquisition of debt-crippled Australian miner Oz Minerals Ltd (OZL.AX) to buy more distressed firms, Oz Managing Director Andrew Michelmore said on Sunday.
"They (Minmetals) want this as their offshore vehicle to grow their base metals business," Michelmore said in an Australian Broadcasting Corp television interview.
"They are going to see this as a platform to really grow their business," he said.
Beijing is encouraging a drive for acquisitions in Australia by its government-backed entities during a low-point in the commodities cycle, a strategy raising concerns among Australian unions and some politicians.
Michelmore said Minmetals at first was looking only to buy some of Oz Minerals mines, dotted across the Australian outback and Southeast Asia before deciding last week to launch a cash offer for the entire company.
"As they (Minmetals) did more and more due diligence, they said no, actually we want the lot," Michelmore said.
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The govt needs some kind of deposit to ensure that the chinese cannot up and run if (when) it gets rough, if they abandon a mine then the govt should be able to confiscate the rest of their portfolio, if copper is unviable (see previouse post) then they should not be able to abandon it and concentrate on other minerals, If they abandon contracts than otheres should be able to abandon contracts with them with impunity