China Buys a Mountain in Peru

[imcarthur]

See BBC News Link

"When open-cast mining begins, in three or four years, a Chinese mining company, Chinalco, will send the copper back home to be turned into electrical wire.

The plan is to use it to carry out the electrification of the whole of China."

"The copper Chinalco extracts from Toromocho will cost something like US$410 (£210) per ton. Today, the price for copper on the London Metal Exchange was $8,255 (£4,220) - 20 times more.

Chinalco stands to make a 2,000% profit on its investment."

They get the raw resources they need & at a bargain price.

Ian

[nostatic]

feh...everyone knows that China is a 3rd world country.

u s a u s a u s a

[alf]

sounds like good business to me.

[m21sniper]

Originally Posted by nostatic

feh...everyone knows that China is a 3rd world country.

u s a u s a u s a

Erm, they're using it to electrify the country.

As in, we're in the 21st century, and they don't even have universal electricity supply yet.

Yeah...PRC, PRC, PRC. Go commies!

[kstar]

In many ways, China passed the USA years ago.

[HardDrive]

Originally Posted by m21sniper

Erm, they're using it to electrify the country.

As in, we're in the 21st century, and they don't even have universal electricity supply yet.

Yeah...PRC, PRC, PRC. Go commies!

Yes, yes. When you look in your rear view mirror, and you see a steam roller approaching at 100mph, gloating that 'I'm in the lead!' is the best course of action.

[m21sniper]

At the stage their economy is in huge gains are going to be made as they transition from the stone age. This is perfectly normal. As their economy and society actually develops, their pace of expansion will be greatly slowed.

Stop all your panicking.

Everything that's said about China now was said about Japan back in the 80s (except the filthy red commies parts, of course). China is just the latest racial epithet removed - ns for everyone to fret over.

Shrug.

[The Gaijin]

I once worked on a project like this. The whole mountain was being being turned into a slurry to be shipped via pipeline to the coast. Then the water was returned via another pipeline.. The ore was then shipped to Canada to be refined using cheap hydro-electric power.

This project will cost 100s of millions or billions to develop and is one of many around the world..

[The Gaijin]

Originally Posted by m21sniper

Stop all your panicking.

Everything that's said about China now was said about Japan back in the 80s (except the filthy red commies parts, of course). China is just the latest racial epithet removed - ns boogie man for everyone to fret over.

Shrug.

m21 - you are so right..

[legion]

Come on guys, you know how this works.

The second the equipment is on site and the mines are shown to be profitable, Peru will nationalize the mine.

[kstar]

Originally Posted by m21sniper

At the stage their economy is in huge gains are going to be made as they transition from the stone age. This is perfectly normal. As their economy and society actually develops, their pace of expansion will be greatly slowed.

Stop all your panicking.

Everything that's said about China now was said about Japan back in the 80s (except the filthy red commies parts, of course). China is just the latest racial epithet removed - ns boogie man for everyone to fret over.

Shrug.

Japan's a small country. When China is on par with Japan, it will dwarf any other country in the world by GDP.

Not a "boogie" man at all, but a great place for Americans to sell stuff to.

edit: I take it, based upon your perspective, that you have not recently been to any of China's numerous major cities?

FWIW.

[kstar]

Japan has a current per capita GDP of about $34k and China about $5300 (CIA Factbook numbers).

Japan has about 128M people, China over 1.3B people.

Do the math.

[widebody911]

Originally Posted by kstarnes

Not a "boogie" man at all, but a great place for Americans to sell stuff to.

WTF will we sell to them? "Services?" Just about all our physical goods are already made in China!

[legion]

We have HUGE amounts of copper and iron in this country.

I know for example, in the UP of MI, the deposits are very large. The mines all shut down in the '40's - '60's as the price of copper and iron dropped below what it cost to pull out of the ground.

Those mines are still there, and current prices would make reopening those mines economically feasible--except for the fact that EPA rules make it all but impossible to operate those mines.

[kstar]

Originally Posted by widebody911

WTF will we sell to them? "Services?" Just about all our physical goods are already made in China!

We've been selling them Coke and cigarettes for years.

An example is iPods and iPhones. Apple is close to cutting a deal with China Telecom.

The funny thing is that some of these electronics are made in China/Taiwan but the lion's share of the profits go to an American company.


iPod example:

The researchers estimated that $163 of the iPod’s $299 retail value in the United States was captured by American companies and workers, breaking it down to $75 for distribution and retail costs, $80 to Apple, and $8 to various domestic component makers. Japan contributed about $26 to the value added (mostly via the Toshiba disk drive), while Korea contributed less than $1.

See: http://www.nytimes.com/2007/06/28/business/worldbusiness/28scene.html

I'm working on a deal now that takes one of America's number one brands into China exclusively through a single Chinese distribution channel.

Emerging China is an awesome opportunity for US capitalists.

Best,

[nostatic]

did anyone watch the Frontline episode last night? Pretty interesting stuff. The new generation is struggling with many of the issues that have faced Americans for some time now. China has a ton of things to work through, but don't underestimate the country or the culture. To dismiss them as the current Japan is nearsighted at best. There is a reason that they've endured for over 5000 years.