Chinese Entrepreneurs Willing To Invest In Venezuelan Gold And Coal Deals
VHeadline.com:
Venezuelan President Hugo Chavez Frias has added gold and coal to the price list for Chinese entrepreneurs willing to invest in Venezuela. At least 2 companies, Shangdong and Yankuang have announced a readiness to enter into joint ventures… Shandong says it will make an initial investment of $21 million to dig for gold.
The Venezuelan President has visited the eastern Chinese mining province of Jinan.
Chavez Frias aims to supply China with 500,000 barrels a day in 5 years time but currently Venezuela hopes to end the year sending 150,000 bpd. Experts warn that transport costs and other factors may prove too expensive for the project to work.
China will develop the Orinoco Belt Junin 4 oil field. The oil deal includes purchasing 12 drilling platforms from China and launching another 12 in a joint venture factory in Venezuela. Both countries have agreed to build an optic fiber communications network. The deal for China to build 20,000 houses in Venezuela will cost $1.2 billion.
Venezuela’s Simon Bolivar satellite has not started yet, Chavez Frias admits, but it will be ready in a year’s time. ‘The Simon Bolivar satellite will be built in China and reinforce the process of growth in the telecommunications sector, which this year has reached 26%.’
Trade between the 2 countries has risen 187% since 1999… Venezuela is currently top Chinese Latin American investment country. Another positive element that has emerged from Chavez Frias‘ visit to China is that country’s support for the Venezuelan bid for a seat on the United Nations security council.
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