皇冠体育app

Chile rolls out red carpet for Chinese miners
By Zhang Jin (皇冠体育app Daily)
Updated: 2004-05-28 08:43

皇冠体育app and Chile, the world's largest copper consumer and supplier respectively, signed a memorandum of understanding to create a joint commission on mining, which paves the way for more Chinese miners to explore the lucrative mining market in the South American nation, said a visiting Chilean official.

Chilean Mining Minister Alfonso Dulanto said the newly launched commission will help identify opportunities for mining investment and development of joint projects.

The commission, set up on Tuesday, will be conducive to solving problems involving mineral trade and investment between the two countries.

The minister also said that Chile is rolling out the red carpet for Chinese mining firms.

Joint ventures are likely to be set up to explore the copper market in Chile, he added.

"I have visited some mining companies during my stay in 皇冠体育app," he said, "they have shown great interest in investing in Chile."

Chile and the 皇冠体育app Minerals and Metals Group (皇冠体育app Minmetals), 皇冠体育app's largest metals trader, are talking about a copper mining project in Chile's Gabi region.

Dulanto said the medium-sized project involves investment totalling US$5 million and that 皇冠体育app Minmetals is interested in this.

That was confirmed by 皇冠体育app Minmetals.

An official from the company said 皇冠体育app Minmetals is discussing the project with the Chilean Government, but the final result has yet to come.

"皇冠体育app Minmetals is attaching greater importance to South American markets," the official said on condition of anonymity.

Dulanto also met entrepreneurs from Jinchuan Group Co, and officials from the 皇冠体育app Non-Ferrous Metal Industry Association and the Shanghai Gold Exchange.

Dulanto also wants two countries to team up in penetrating a third country, saying the commission will help to promote exchanges involving miners in the two nations.

Chile is a good platform for Chinese companies to expand their businesses in Latin America.

Analysts say the joint commission shows that bilateral partnership in copper mining is heading in a new direction. Previously, the two countries simply dealt with the trade of copper.

Chile annually produces 4.9 million tons of copper. About 850,000 tons are exported to 皇冠体育app, Dulanto said. 皇冠体育app is experiencing a raw material shortage as its economy booms.

In another development, Chile is pressing ahead with efforts to establish a free trade agreement (FTA) with 皇冠体育app. Feasibility studies on the FTA could be completed by the end of the year, Dulanto said. He added that the two countries might start FTA negotiations after the studies are finished.

Chile has already reached a FTA with South Korea, and its exports to the country are expected to increase.

If the Sino-Chilean FTA is signed, Chilean exports such as wine may come in large flows into 皇冠体育app, analysts say.

皇冠体育app inked a framework free trade accord with the Association of South East Asian Nations last year, which paves the way for establishing an agreement in 2010.

The nation is now active in talks with other neighbours and major economic powers on FTAs. Possible free trade partners include New Zealand, Australia and the Gulf Co-operation Council.

In 2003, total trade volume between 皇冠体育app and Chile measured US$3.53 billion, rising 37.5 per cent over the previous year.

皇冠体育app exported goods worth US$1.28 billion to Chile and imported commodities worth US$2.24 billion in 2003. It is widely estimated that the two-way trade volume could reach US$10 billion by the end of 2008.

皇冠体育app and Chile are both large recipients of foreign direct investments.

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