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Jinchuan eyes shared interests underground

By Ding Ying: 0 Comment(s)Print E-mail Beijing Review, September 20, 2011

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Jin Chuan Resources Ltd. has been interested in the nickle resources in South Africa and has launched cooperation with local companies. [Maverick Chen / China.org.cn]

Zhang said Metorex has had long-term cooperation with JNMC. As early as in 2007, JNMC signed long-term exclusive sales contracts for Metorex's cobalt hydroxide and cobalt carbonate products. "We have cultivated mutual trust through our cooperation," Zhang said.

He believed another reason Metorex chose JNMC was its confidence in the Chinese market. China has unchallengeable advantages in financing and technology, and JNMC possesses leading technology in mineral exploration. "The most important thing is we can realize common development in this way," he said.

Once the purchase of Metorex succeeds, JNMC's total investment in Africa will reach $2.237 billion, making Africa its top overseas investment destination.

"Actually, we are a little late for entering this market. Many American and European mineral giants have occupied the best resources," he said.

JNMC and Wesizwe focus more on environmental protection and highly processed mineral products, he added. The Chinese Government has set strict regulations on overseas investment, banning all projects that might cause environmental problems.

Before the Wesizwe purchase, Zhang had only two Chinese staff members in the JNMC's South African branch. Now most of his employees are still locals. JNMC has kept all former Wesizwe employees except four leading positions for JNMC officials. And Zhang plans to recruit more local employees for the company.

He said once Wesizwe starts mining, it will create at least 3,200 jobs for local residents. Unemployment remains a pressing challenge for South Africa. Every South African president in recent decades has tried to boost employment. In 2010, the country's unemployment rate for black youths was as high as 39 percent. "Our investment benefits local people as we provide more job opportunities for them," he said.

Wesizwe has signed an employment commitment and social and labor plan with the South African Government to create more jobs. "We are trying our best to shoulder social responsibility here. And we hope to set a good example for all Chinese enterprises in Africa," Zhang said.

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