http://www.busrep.co.za/index.php?fSectionId=553&fArticleId=2509813
OPINION/ ANALYSIS Sinosteel China has come in for criticism recently in its scramble for African resources amid strong global demand for commodities. Specifically, the International Monetary Fund charges China with buying thousands of tons of iron ore at below market prices from Liberia's transitional government. And Liberia has, in turn, failed to release documents accounting for the revenue. Closer to home, Chinese state-owned steel trader Sinosteel Corporation has been advertising in local newspapers for opportunities to buy or invest in metal ores in South Africa. As a raw materials supplier and sales agent for major Chinese steel mills, Sinosteel trades in iron ore, manganese ore, chrome ore, coke and scrap metal, among others. Its joint Channar iron ore mine in Australia produces more than 10 million tons of high-grade iron ore a year. The group also has a presence in South Africa, which, as we know, holds the world's largest-known deposits of chrome ore, manganese ore and vanadium, and significant deposits of iron ore, estimated at 10 billion tons. Sinosteel has invested in ASA Metals, a joint venture with the Limpopo Economic Development Enterprise, to establish a chrome complex producing 400 000 tons of chrome ore and 120 000 tons of ferrochrome a year. The problem for Sinosteel is that it is a seller's market at the moment: world supply of resources, particularly those used to produce steel, cannot match projected demand due primarily to strong growth in China and India. Sinosteel's chief representative in South Africa, Jie Dang, says the company wants to make further investments locally but has been unable to find potential projects "because resources are in short supply". He says this is forcing Sinosteel to look north of South Africa's borders. Dang says Kumba Resources, the iron ore producer controlled by Anglo American, previously exported to China through Sinosteel but now circumvents the Chinese trading group. It's unfortunate for Sinosteel, but there aren't any long faces at Kumba. Kumba says it did, indeed, use to involve Sinosteel, formerly known as CMIEC, but it believes any third party adds to costs and instead now has its own offices in Beijing and Hong Kong. "We need no assistance with marketing in China and the Chinese firms we deal with do not need a third party either," says Kumba's Trevor Arran. IS ------------------------ Yahoo! Groups Sponsor --------------------~--> DonorsChoose. A simple way to provide underprivileged children resources often lacking in public schools. Fund a student project in NYC/NC today! http://us.click.yahoo.com/EHLuJD/.WnJAA/cUmLAA/TySplB/TM --------------------------------------------------------------------~-> -------------------------- Want to discuss this topic? Head on over to our discussion list, [EMAIL PROTECTED] -------------------------- Brooks Isoldi, editor [EMAIL PROTECTED] http://www.intellnet.org Post message: [email protected] Subscribe: [EMAIL PROTECTED] Unsubscribe: [EMAIL PROTECTED] *** FAIR USE NOTICE. This message contains copyrighted material whose use has not been specifically authorized by the copyright owner. OSINT, as a part of The Intelligence Network, is making it available without profit to OSINT YahooGroups members who have expressed a prior interest in receiving the included information in their efforts to advance the understanding of intelligence and law enforcement organizations, their activities, methods, techniques, human rights, civil liberties, social justice and other intelligence related issues, for non-profit research and educational purposes only. We believe that this constitutes a 'fair use' of the copyrighted material as provided for in section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use,' you must obtain permission from the copyright owner. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/osint/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
