Anglo in coperation with China Development Bank

  • it was the first stage of an expanding relationship

ANGLO American had reached an agreement with China Development Bank to develop projects in China, Africa and other regions, Anglo spokesman Pranill Ramchander said yesterday.

The memorandum of understanding was signed in November. It was the first stage of an expanding relationship and no particular projects, regions or minerals were under immediate consideration, he said.

Anglo, one of the world's largest natural resource groups, has coal operations in Australia, Colombia, SA and Venezuela . It has a relatively small toehold in the Chinese mining industry, owning an aggregates quarry outside Shanghai, an interest in a coal-to-liquids project and a stake in Shenhua Energy, the coal mining group.

Cynthia Carroll, Anglo’s chief executive, said that her group was actively looking for more assets in China and that she hoped the agreement with CDB would lead to “a productive relationship lasting many years”.

As well as helping Anglo to break into China’s mining sector, the deal could give the Chinese state greater access to mineral resources in Africa, where it is trying to increase its influence.

Chen Yuan, CDB governor, said: “Anglo American is one of the world’s leading resources groups. With the establishment of this strategic alliance, we have become much better positioned in doing business in the natural resources industry. ”

China Development Bank plays an important role in financing China's medium- and large-scale priority projects in infrastructure, basic industries and the pillar industrial sectors, and supporting the overseas investment projects of Chinese enterprises.

In November 2006 the CDB funded the purchase of a 1 per cent stake in Anglo by Larry Yung, one of China’s richest men. His vehicle, China Vision Resources, bought the stake for about £388m from South Africa’s Oppenheimer family, founders of Anglo. Mr Yung is still an Anglo shareholder, and his stake remains less than 3 per cent so does not need to be disclosed.

It is understood that the CDB has offered Chinalco $120bn (£61bn) of funding if it does decide to mount a full takeover bid for Rio Tinto.

(FT, Business daily)

No comments: