This Region Is China's Next Target For Resource Deals

Authored by Dave Forest via OilPrice.com,

South Africa’s chamber of mines officially filed suit this week to block the country’s challenging new mining charter. But elsewhere in the world, some of the biggest investors in natural resources are ramping up their financial commitments — to a new target region for mining and energy deals.

Latin America.

Specifically, Brazil. Where government officials announced that a major new infrastructure fund backed by China will begin accepting investment proposals this week.

The $20 billion fund was unveiled late last year. With Chinese backers committing $15 billion of the total funds, and the balance provided by Brazilian and international banks.

The focus is infrastructure to speed resource development across Brazil. With officials saying the fund will focus on rail projects, particularly those that link agricultural regions for crops like soy and corn to ports — where these commodities can be shipped abroad.

The move confirms a trend that’s been crystallizing over the last year: a big move by China into the resource sector of South America. Coming on the heels of major mining deals for Chinese firms in places like Argentina.

Those deals have expanded China’s resource influence on the continent — moving outside of initial Chinese investment destinations like Peru and Ecuador. Showing that big investors like what they see in this part of the world, and are pursuing more growth opportunities here.

Brazil however, has been notably absent from Chinese plans up until recently. With even the high-impact oil sector here seeing few Chinese companies involved in projects.

That now appears to be changing — given a slew of projects proposed by Chinese entities in Brazil over the past year. Including a $10 billion “dollars for oil” loan between China Development Bank and Petrobras.

The new $20 billion fund will accelerate China’s influence in Brazil. And could be beneficial to resource projects here — which can piggyback off new rail and other infrastructure to move supplies of minerals, petroleum and agricultural goods to market. Watch for specific projects approved for development by the fund.

Comments

el buitre Yog Soggoth Thu, 06/29/2017 - 12:58 Permalink

Trump could start "draining the swamp" by putting the best third of the FBI, assuming there is a best third, on taking the Seth Rich murder right to the top, including the coup de grâce in the hospital.  The DNC is so arrogant and incompetant that a real investigation would be a piece of cake.  First, he has to get rid of McCabe.  Why has he left him in place as the acting director?  With his Hatch Act infractions should be a piece of cake.  A half mil ain't chump change, even in our day of QE.    What's stopping him?  Stop Tweeting about face lifts and get those capital indictments rolling.  Appoint someone clean as an acting director.

In reply to by Yog Soggoth

semperfi MFL5591 Thu, 06/29/2017 - 10:30 Permalink

oh, they passed a law alright - the law they fully intended for you - the law they fully intended to keep around forever and in fact make it more intrusive over the years - all in the spirit of making sure all of "your" money is transferred to "them" (the govt) when you die - becuase afterall, they (the govt) believe its their money and not your money

In reply to by MFL5591

BitchesBetterR… Thu, 06/29/2017 - 10:27 Permalink

No kidding!!  just ask yourselves why Dilma Rousseff was kicked out ......remember: Brazil is a main partner in the BRICS allianze, so of course Washington is on red alert to fuck up that country as much as they can to derrail Chinese investments & trade agreements... 

gespiri Thu, 06/29/2017 - 10:34 Permalink

As China, Russia, Iran, and the rest of the BRICS/Silk Road participants move forward to create real free trade for everyone (without requiring any stupid trade deals like NAFTA or TPP that benefit only the mega corps), the neocon zionists in the gov't have no solutions to offer.  Instead, they want to wage war ASAP to bring everyone in control and continue their horrible legacy.

To Hell In A H… Thu, 06/29/2017 - 10:41 Permalink

Any nation/politician accepting Chinese fiat paper, for their tangible assets, should be hung, drawn and fucking quartered for their treachery. Develop the mines yourself and sell it on the open markets, as the world, especially China, needs these resources in order for their country and economies to grow.Fuck the Chinese, they are almost becoming as much as a parasite as the Americans, apart from blowing and bombing people to bits under a made up pretext. The Chinese must be treated as they treat others in their country. No 100% ownership, but a partnership.Allow the Chinese to bring in the finance, expertise, but own no more than 40%. If they don't like it, go and find the resources from somewhere else. This should be the best offer to the Chinese and it's a fair offer IMO.

besnook To Hell In A H… Thu, 06/29/2017 - 12:29 Permalink

all of theses resources have been available to usa investors since forever. the usa ignored them. it isn't like china discovered them. all these countries needed was the investment to extract the resources. china is providing the capital for the infrastructure to extract the resources so they can buy the resources for their own development. this will provide a resource of capital for the development of the south american countries' economies benefiting the entire population. it is a win win deal for everyone.the usa model, on the other hand is to keep these countries poor so no rivals to the usa could arise. south america has depended upon the western bankster system since the turn of the 20th century. china has now invaded with a better opportunity for these countries at the expense of usa influence and policy. it will be interesting to see how this plays out as the usa tries to destroy venezuela, brazil and argentina with ecuador waiting its turn for electing another "commie, socialist, dictator, human rights violating, radical, crazy, baby killing. corrupt president

In reply to by To Hell In A H…

Blano Thu, 06/29/2017 - 10:41 Permalink

Dear ZH,I don't care if it's a guest post, please post hot Latin/Brazilian/whatever pics in your articles as well.Thank you.Sincerely,Long time member

Xena fobe Thu, 06/29/2017 - 10:49 Permalink

Investment didn't work out too well for them in Nicaragua.   These deals work in corrupt police states where the population is already oppressed and in fear.  They do not benefit the average citizen.  Notice the nations where this investment occurs.  The US is one of them.

truthalwayswinsout Thu, 06/29/2017 - 10:52 Permalink

China is wasting its time and resources chasing these deals.If the US takes NASA public and raises $1 Trillion to commercialize space within 10-15 years most raw materials will be so cheap you won't be able to give them away.Of course, the country that gets there first will make $100's of Trillions, pay off its national debt, save the environment and create 10's of millions of jobs.The biggest problem in all this is Mr. Make America Great Again has his head up his ass and really doesn't have a viable plan.

Yog Soggoth truthalwayswinsout Thu, 06/29/2017 - 12:34 Permalink

What's the plan, mine the moon with robots? People can't make it past the Van Allen Belt, and I have yet to see how solar powered heavy machinery could operate in tunnels remote controlled from Earth unless fixed panels created a whole lot of juice to a grid. Can't mine on the surface because the gravity is too weak. I see more potential harnessing tides and wind at this point of technological advancement. By all means send your money into space. I just hope it comes crashing down on my cattle ranch so I can scrap it.

In reply to by truthalwayswinsout

BrownCoat Thu, 06/29/2017 - 11:10 Permalink

I'm not worried. So what if China invests all over the world? Perhaps it will change China's protectionist trade perspective....Or China might continue to behave like a Bill Gates Monopoly as China does with the rare earth industry. 

headless blogger Thu, 06/29/2017 - 11:11 Permalink

There's been a "prophecy" that China will eventually come to the Americas, which will result in the dismantling of the "white culture" and empowerment of the Indigenous peoples from Whites. Amazingly, it seems to be coming true.