Must read article about Sino-Latin American relations

A must read article for anyone interested in Sino-Latin American relations was published today on SeekingAlpha’s website.  It is written by Erik Bethel, one of the four founders and CEO of Sino-Latin Capital.  I highly recommend it to anyone even mildly interested in the growth of Sino-Latin American relations.

Click here to access the full article direct from SeekingAlpha.

Travel to any country in Latin America and you will see the visible hand of China at work: a computer manufacturing plant in Mexico, a copper mine in Peru, a football stadium in Costa Rica. In the year 2007, the thought of China in Latin America would have appeared, at best, improbable. But in a three-year stretch, China signed free trade agreements with Chile, Peru and Costa Rica, inked billions of dollars worth of deals in oil and mining projects throughout the region, and supplanted the US as Brazil’s biggest trading partner. Once almost unseen in Latin America, China’s bilateral trade has risen from $12bn in 2000 to well over $150bn today.

Given the importance of its new Asian friend, Latin Americans are rolling out the red carpets to Chinese business delegations and jumping on planes not only to Beijing but also to Shanghai, Shenzhen, and Tianjin.

Rationale Behind Chinese Investments in Latin America [...]

Please visit SeekingAlpha to read the full article

Jim Rogers: “It’s Worse than Before…”

Xstrata approves US$1.47bn copper project in Peru

Reuters and the Mining Journal are reporting on each of their respective websites that Xstrata has approved a massive $1.47 billion usd expansion project of the Antapaccay copper development in Peru.

The aim is to expand the company’s Tintaya Copper mine which is roughly 10km away, adding 60,000 tons of copper to annual production (a 60% increase).

Read more about this development in this article published by The Mining Journal

China to create $5 billion fund to invest in Latin America

In line with China’s outbound investment strategies in Africa and Asia, China is now planning to create a $5 billion usd investment fund for Latin American investments.

The funds target investments will include, infrastructure (probably to help the Chinese get commodities out), agriculture, mining and energy.

Read more in Spanish from Argentinean DERF Agencia de Noticias.

Crude Oil and China

New measures show China imports record level of crude oil. Inventory replenishment is cited as a driver. [Tantao News]

Gold Demand in China

Chinese demand for gold set to double in the next decade. Although a leading gold producer, China is now looking overseas for more supply. [TantaoNews]

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This video is a bit dated, but no less offers a concise perspective on Chinese gold demand. [AlJazeeraEnglish]

Newswire: Peru, Gold, Mining Exports

Peru’s gold project portfolio demands US$ 4.5 billion investment — Andina

The portfolio of gold projects identified in Peru are likely to demand an investment of US$ 4.5 billion investment in the next six to eight years, which shows the country’s great mining potencial, reported Wednesday Peru’s National Mining, Petroleum and Energy Society (SNMPE).

Gold production in Peru to increase by 10% this year — Andina

Peru’s gold production would register an increase of 5-10% by the end of 2010, totaling 200.2 tons, Peru’s Mining, Petroleum and Energy Society (SNMPE) estimated today.

Peru’s mining exports up 53.8% totaling US$ 3.1 billion in January-February — Andina

Peru’s mining exports in the first two months of the year totaled US$ 3.1 billon,a 53.8 percent rise compared to the same period last year, the Ministry of Energy and Mines (MEM) reported.

Interactive map of China’s overseas investments

Click here to view the map, courtesy of Forbes

Since 2005 Chinese firms and arms of the Chinese government have invested hundreds of billions of dollars in foreign companies and raw materials. Each dot on this map tracks one of those investments, with larger dots representing…

Andina reports – Peru is China’s main investment destination in Latin America with US$1.4 billion

Lima, Apr. 21 (ANDINA).- The government of the People’s Republic of China stressed Wednesday that Peru is the main investment destination of its companies in Latin American since the amount exceeds US$ 1.4 billion.

“Peru has become China’s main investment destination country in Latin America, while China has become the country’s second trade partner”, stated Chinese Trade Minister Jiang Yaoping.

Click here to read the full article from Andina

Chinese companies step up their game; plan $3.1 billion investment in Argentina

Hot off the presses — CNOOC, has announced plans to step up its overseas acquisitions with a planned purchase of a 50% stake in Argentina’s second largest oil producer Bridas Corp, a subsidiary of Bridas Energy.  If the deal goes through Bridas Energy would become equal partners with CNOOC in Bridas Corp.

Bridas is controlled by the wealthy Argentine businessman Carlos Bulgheroni who also owns a nice 40% stake in Pan American Energy LLC, Argentina’s largest crude oil exporter.  Pan American Energy LLC also owns energy assets in Chile and Bolivia–which China may eventually like a piece of as well.

As the worlds second-biggest energy consumer, after the United States, China is searching for oil assets across the world.  This however, would be the first major purchase by CNOOC, China’s biggest offshore oil explorer in Latin America.  Since 2008 Chinese companies have spent around $13 billion usd on energy acquisitions and are currently bidding for assets in countries ranging from Ghana, Nigeria and Uganda.

Analyst, Neil Beveridge of Sanford C. Bernstein & Co., told Bloomberg in this article, “This seems like a relatively attractive valuation and the acquisition is entirely in keeping with the Chinese government’s policy of increasing oil reserves.”

Once again, China is on the move people.  As I sit here typing this post I can feel the cold air blowing back into Shanghai and I am thinking to myself how if this entire country had two space heaters running like I do right now the world might self-implode… (just a bit of sarcasm incase you didn’t catch it).