Chinalco Mining Company

Need help with my writing homework on Chinalco Mining Company. Write a 2500 word paper answering; China has experienced some significant amounts of economic growth in recent years, i.e., a growth rate of circa 9% for the last about six years or so. It is in a position to enjoy unprecedented industrial growth. but as Whewell (2008) points out, despite its current huge appetite for raw materials, China has limited natural resources and is self-sufficient only in coal. It has been executing some ambitious plans to address this need for raw materials, i.e., it has started looking to the undeveloped or underdeveloped countries which are rich sources of raw materials in order to meet its needs. One of these is the Peoples Republic of Congo, where a $9 billion deal was recently signed between a State-owned firm in Beijing, i.e., China Railway Engineering Corporation, and the Peoples Republic of Congo (www.bbc.co.uk). This deal aims to beef to the infrastructure of the Congo to a significant extent, by lying about 2400 miles of road, 2000 miles of railway, 32 hospitals, 145 hospitals, and two universities. In exchange for this investment into the infrastructure of the country, the Republic of Congo has offered the Chinese Government, i.e, through its state entity Chinalco, a large part of its natural resources, i.e., 10 tons of copper and 400,000 tons of cobalt.

This improved infrastructure is also likely to be very beneficial to Chinalco because it allows raw materials and minerals available in the Congo to be easily transported from the mining sites out of the country so that they can be exported to China. This functions as a win-win deal for China, because it is able to gain access to vast amounts of mineral wealth which help its industries to thrive, and it has free rein to exploit these resources without any need to pay taxes to the African Governments. As a result, a one-time investment in infrastructure enables continuous, tax-free exploitation of the mineral wealth for many years. The deal that Chinalco has procured roughly means that they will be able to access the copper and cobalt mineral resources at a price of about $2000 per ton, which is about $4000 per ton less than that available in the world markets. (Whewell, 2008).

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