China Plans Emergency Oil-Storage Tanks In Northeast

Lundi, novembre 2nd, 2009

China, the world’s second-biggest energy consumer, plans to build emergency oil-storage tanks in the northeast to help bolster fuel-supply security, reported Bloomberg.

The tanks are part of the second phase of China’s construction of emergency oil stockpiles, said Zhang Guobao, the chief of the National Energy Administration.

China will set up oil reserves equivalent to 100 days of net imports before 2020 to avoid supply disruptions, China Petrochemical Corp., the nation’s top refiner, said in a company newsletter on Sept. 23, citing a plan approved by the State Council. The stockpiles will be built in three stages, according to the state-run company.

Construction of the second phase has started with the Dushanzi facility in the western province of Xinjiang, Zhang said last month.

Under the first phase, China has finished building reserves equivalent to about 30 days of net imports, the energy administration said in June.

The International Energy Agency, adviser to 28 oil-consuming nations, recommends its member countries to maintain a stockpile level of 90 days of net oil imports.

Source : Konaxis



Guinea Signs $7bln Deal With China

Vendredi, octobre 30th, 2009

The junta-backed government of Guinea has signed a seven-billion-dollar mining and oil partnership deal with the China International Fund (CIF), Guinea’s mining minister said Thursday, reported AFP.

While the majority of Guineans live in abject poverty, the west African country has vast mineral resources. It is the world’s biggest exporter of bauxite, used to make aluminium, and has important iron, gold and uranium reserves.

The investment will be mainly in infrastructure projects including hydroelectric dams, roads, railways, social housing, power plants, water infrastructure, schools and hospitals, said mining minister Mahmoud Thiam.

« In exchange (the CIF) will become our strategic partner in a mining project that will start with setting up a national mining company in Guinea (…) where all the state’s interests in mining projects will be housed ».

The signing of the deal comes at a time when Guinea’s junta is coming under increasing international pressure over the massacre of over 150 anti-junta protesters by the army on September 28.

Source : Chinafrica



On The Eve Of The China Africa Business Summit…

Mercredi, octobre 28th, 2009

The world has for years been a spectator to the ever-strengthening relations between Africa and China. This relationship is going to hog the limelight in the coming week with the starting of the China Africa Business Summit in Cape Town on October 22nd, 2009. The Summit is going to see a huge turnout with over one thousand delegates from governments and business houses, and they will all gather at the venue of the summit, the Convention and Exhibition Center in Cape Town.

The Summit is of utmost importance for the two sides and for the whole world which is now being closely watched unlike the first Forum on China-Africa Cooperation (FOCAC) held in Beijing in the year 2000. Few had anticipated at that time how significant the relationship would turn out to be for the mutual benefit of both sides. Each meet of the Forum lauded the progress of trade starting at 10 Billion dollars in 2000, to $ 55 billion in 2006 to $107 billion now.

The Summit is the fourth FOCAC meet, with the second and third being held in 2003 and 2006. Africa’s biggest trading partner is now China, which overtook USA only recently. The continent’s largest economy South Africa has been seen its trade with China spiraling upwards. Ever since China’s biggest bank ICBC bought a 20% stake in South Africa’s Standard Bank, the continent has opened a world of opportunities for Chinese investors, since Standard Bank has made inroads into every part of Africa with a well-linked network.

Economists have been full of praise for China’s ability and willingness to fulfill every need of Africa, and start the process of development long overdue and initiate the infrastructure network crucial in every way. Thus it has kindled hope for nation doomed otherwise due to its human rights issues in the eyes of the Western nations, and given up on despite its rich natural resources. It is only China’s pumping of funds and pushing ahead with its agenda of aid without questions, that has woken up the Western world to the land of opportunity that Africa is proving to be.

Source : Business Africa



Guinea In Talks With China Over Resources Investment

Lundi, octobre 26th, 2009

Guinea’s ruling regime is in talks with China over investment in its natural resources, the west African country’s minister of mines said, reported British newspaper the Financial Times on Monday.

Mohamed Thiam said talks could be concluded by the end of the year between the regime in Conakry and the Hong Kong-based China International Fund (CIF) to bring in billions of dollars of financing for infrastructure, minerals projects and oil prospecting, according to the business daily.

The deals would be among the largest of their kind in Africa, said the FT.

The CIF would pump in seven billion dollars of finance for projects ranging from the creation of an airline to power generation.

The fund would also join forces with Angolan state oil company Sonangol to explore for oil offshore. The Guinean regime, CIF and Sonangol had signed a memorandum of understanding on a prospecting deal, Thiam said.

A military junta took power in Guinea in December and earned international condemnation last month for a bloody crackdown on opposition supporters.

Source : Konaxis



Kenya Turns Eyes Towards China For Growth And Development

Vendredi, octobre 23rd, 2009

For all African countries, the first nation that comes to mind when they think of external participation and support for their development, is inevitably China. China has become a towering presence in the African continent, and they like its no questions asked attitude when it hands out doles, aid, loans or even technical expertise. Thus, while some of its deals are rendered questionable by international peace and human rights standards, many others are laudable since they have initiated the process of development in grossly underdeveloped countries.

Kenya, the well-known east African country located along the Indian Ocean, has dispatched a delegation to China for discussing possibilities of alliances between the two nations to develop a port in Lamu and development of a rail and road network till Kenya’s borders with Sudan and Ethiopia. The high-profile delegation is led by Prime Minister Raila Odinga, who prefers Chinese involvement to other countries because of the “full package” provided by China in terms of funds and technical expertise. Spurred by massive Chinese investments in other African countries like Guinea where it has committed billions of dollars for infrastructure and oil, and Nigeria, where it has bid for six billion barrels of its oil reserves, Kenya also wants to claim a piece of the investment cake.

At present, CNOOC, one of China’s three big oil companies, is starting oil exploration in Northern Kenya in October, besides the exploration rights it has over a second block in the Lamu basin. If China agrees to support the development of the Lamu port, the “second corridor” of Kenya would develop at a rapid pace. The “second corridor” is he name given to the development of the rail and road network towards the Kenyan coast along with the Lamu port. This would help in the development of northern Kenya, so far lagging behind, and also provide an alternative route for Southern Sudan’s oil for export. Kenya’s development would be immensely beneficial for the neighboring countries of Ethiopia and Sudan. China has large projects under way in both these countries and the development of Kenya’s second corridor would prove beneficial to Chinese interests as well.

Source : Business Africa



Women And The China Africa Relationship

Mercredi, octobre 21st, 2009

The significant China-Africa Women’s Forum 2009, which concluded on The 14th of October in Cairo, highlighted the need to involve women in the gradually strengthening Africa China relationship. Chen Zhili, the visiting President of the All-China Women’s Federation (ACWF), stated how her country and her organization in particular, had been trying to promote cooperation with all African nations in respect to women’s issues for the last five decades. The ACWF has been collaborating with African women’s organizations since the 1950s, which have picked up momentum after the Beijing Summit in 2006 of the Forum on China Africa Cooperation. African women have welcomed the moves of their Chinese counterparts and have since participated in various exchanges and cooperative endeavors.

ACWF is the largest women’s organization in China and has since 2006, increased the mutual visits exchanged by the women of the two countries. High-level delegations have visited many African countries to reach out to the local women. Thus they have established a network in 51 African countries and also provided loans through micro financing in 45 of these countries. In the two years between 2007-2009 China has provided funds amounting to 1 million dollars to 13 African nations.

The ACWF has been helping women by sharing the Chinese experience in dealing with poverty, rural development and empowerment to wives of African diplomats serving in China. Chinese universities are encouraging African women to enroll for higher education and are being sponsored by the government.

Besides the Chinese delegates there were 110 women from 29 African countries who attended the Forum. The concluding session reiterated their commitment to fight poverty and find ways to adopt the Chinese model of sustainable growth in their continent. The top priority would be to improve the standard of living of women in their countries. Both China and Africa have the largest female populations in the world, and every crisis affects women the most. The economic recession has affected the availability of jobs more, due to gender inequalities prevalent. Professional training and equal opportunities for them would help them tremendously, and stepping into the political arena would give them the power to participate in the decision making process of their countries.

Source : Business Africa



Dialogue Between Guinea And China For Investment In Resources

Lundi, octobre 19th, 2009

Guinea is a West African country known previously as French Guinea. Known for its rich reserves of bauxite, approximately half of the world’s reserves, it possesses around 25 billion tones. Other reserves include iron ore, uranium, gold and diamonds and a few other metals. Its regime has initiated talks with a China fund for investments in its natural resource exploration. This was stated by the country’s minister of mines, according to the Financial Times London.  Mohamed Thiam said that talks between the government in Conakry, the capital of Guinea and the China International Fund were likely to be concluded by the end of 2009. This would bring millions of dollars into Guinea for the development of infrastructure, creation of airlines, power generation, oil prospecting and mineral projects. The CIF would also join up with the Angolan state oil company, Sonangol for oil exploration in Guinea’s offshore blocks. The fund has already been interacting with the Angolan company since it has granted loans worth $9.2 billion, and is also the link between Sonangol and China’s Sinopec.

The minister was optimistic that his country would see over seven billion dollars of investment in the various projects initiated by the Guinea Development Corporation. His country has opted for the joint venture route instead of agreeing to give away natural resources in exchange for infrastructure development. This would lead to co-ownership of infrastructure projects, development of mines and natural resources and the country’s involvement at every step would prove beneficial in the long run. The deal would be the largest of its kind in Africa.

The deals would pitch China against western interests if it comes through at a time when there is a race for Africa’s natural resources. Guinea is under a military regime and facing worldwide criticism for its policies and crackdowns on the opposition. Threats of sanctions have kept the country on tenterhooks, and the added tension between different factions of the army, are all impediments to progress. A growing wave of discontentment has led to trade unions threatening a strike, which would only make matters worse on Guinea. The present deal would yet prove to be a lifeline if it comes through.

Source : Chinafrica



China Now South Africa’s Biggest Export Receiving Nation

Lundi, octobre 12th, 2009

China has emerged as the number one export destination for South African goods, surpassing the United States, according to figures received for trade for the first half of 2009. This is the culmination of the Asian giant’s efforts to scale up its trade links with all African countries. The biggest regional trading partner for South Africa is still the European Union. But South Africa’s exports alone to China touched an all time high of 27.6 billion rand for the first six months of 2008, as opposed to 35.8 billion for the 12-month period of 2007. In comparison the South African nation’s exports to the US were only 19.1 billion rand against 66.5 billion the year before. The overall trade figures indicate that China’s total trade with Africa amounted to $107 billion, a bit higher than the United States.

Economists find the Chinese footprint across the length and breadth of Africa.  Though imports from China include machinery and equipment and a lot of finished goods, African exports are primarily comprised of minerals, oil and other precious natural resources. China has been lapping up every possible investment opportunity in Africa, with its largest bank acquiring a 20% stake in South Africa’s Standard Bank. Low interest loans, interest free loans, waiving of loans, are some of the ways that the Chinese have placed cash in the hands of African countries that have had natural resources in abundance but no cash for development. Over 800 Chinese state owned companies managed 900 projects in Africa, a substantial number of them involved in the oil sector.

China’s interest helped Africa pass the difficult period of recession that gripped the world with demand for its products continuing in much the same scale, especially at a time when western demand was suddenly withdrawn or drastically cut.

Source : Business Africa



China Shows Substantial Interest In African Agriculture

Vendredi, octobre 9th, 2009

China’s involvement with African infrastructure and industrial development has been written about and discussed in every corner of the world, and there is no denying the fact that China’s advancement can be credited, to a large extent, to its oil sourcing from Angola, Nigeria and Sudan, and its minerals from Zambia, Liberia and South Africa. Whether this should be perceived as a resource grab, as many in the western world do, or be accepted as a compassionate overture, as China reiterates, is a matter of discussion. The latest in the series of its interests in Africa is agriculture, which again, is a topic of debate whether it is self-serving or concern based. Africa has the resources and potential to become one of the world’s prominent food grain suppliers. Yet it remains one of the largest recipients of food aid from global organizations. China with its increasing population of billons to feed plans to grow food in Africa using its own technology, labor and resources on African land and then ship back the entire produce. Would this agricultural development of Africa be treated as Africa’s progress for Africa’s benefit or for China’s benefit, remains to be seen. Its involvement on agriculture in Mozambique will serve as a prelude to things in store for other countries promising land for agricultural development to China. The Asian tiger promised $800 million for the modernization of agriculture in Mozambique, including the construction of dams and canals to divert water towards the highly arable land. Research by Chinese scientists continues in various institutes set up, again by the Chinese. The Africans are happy with the potential benefits of this rather than present ones. Reports by two UN policy centers reveal that only a few of these land leases are rent or fee based, the others are given in return of the hope for growth, development and employment. The development is taking place with Chinese contractors getting jobs to do and make profits in the process, while the local Africans end up losing subsistence farmland. China is certainly not growing food for the Africans, as is evident from the amount of rice that is being planted in the fields everywhere, since rice is not part of the African staple diet.

The Chinese perspective deserves a mention as well. There is no denying the fact that millions have been invested in “problematic” zones with no infrastructure or easy operations with no obstructions at every step. The same investment elsewhere would have borne fruit sooner and would have been hassle free as well. That it cares about Africa’s growth has triggered its interest and is making efforts to set up agricultural cooperatives, which does include local participation. Its rice growing interest may one day yield income from exports of rice to countries with huge demands of the grain. The world is too advanced to allow colonial kind of exploitation or one-sided benefits. China is positively giving some to get some and the same holds true for Africa.

Source : Business Africa



All of China’s Oil Deals In Africa Not Smooth Sailing

Mercredi, octobre 7th, 2009

African countries have had China’s participation in oil exploration operations for the last five years. But all is not well and China’s recent acquisition efforts have been running into difficulties. While some are facing vetoes there are others that have reached advanced stages of negotiation. For instance, in Nigeria, China’s state owned China National Offshore Oil Corp. (Cnooc) has reached advanced stages in talks about taking over blocks of oil exploration that are underutilized though owned by the Royal Dutch Shell and other companies. This was announced by Nigeria’s oil minister and a presidential spokesman. About 20 onshore blocks were at stake and the likely investment would be to the tune of several billion dollars.

This is sharp contrast to the fate of late stage negotiations of Chinese companies in Angola and Libya. In Libya, the bid of $462 million by China national Petroleum Corp for Verenex Energy Inc. Close on its heels was Angola’s state owned Sonangol wanting to stop Marathon Oil Corp.’s 20% stake in the oil fields to China’s Cnooc and Sinopec. The latter’s stand is the extreme opposite of the reception and preference Chinese companies received in Angola half a decade ago. Angola became China’s largest oil supplier in 2008 and Sino-African trade touched $106.8 billion.

The possible explanation for things coming to such a pass can be found in China’s grip too tight for Africa to handle. Moreover China has kept local recruitment levels low and has done little to increase employment opportunities or train the locals in their projects. Their policy of oil for infrastructure was welcomed initially but is now being spurned. The China Africa relationship is gradually maturing and as Africa moves higher up on the development ladder, it is being selective about its path. China is no longer the only country willing to pump in millions into Africa’s infrastructure. Western banks are again lapping up investment opportunities and fund requirements of African companies. The U.S. is also increasing its investment in oil and agriculture. Thus Africa’s need for China is gradually falling.

Source : Business Africa