South Africa’s chamber of mines officially filed suit this week to block the country’s challenging new mining charter. But elsewhere in the world, some of the biggest investors in natural resources are ramping up their financial commitments — to a new target region for mining and energy deals.
Specifically, Brazil. Where government officials announced that a major new infrastructure fund backed by China will begin accepting investment proposals this week.
The $20 billion fund was unveiled late last year. With Chinese backers committing $15 billion of the total funds, and the balance provided by Brazilian and international banks.
The move confirms a trend that’s been crystallizing over the last year: a big move by China into the resource sector of South America. Coming on the heels of major mining deals for Chinese firms in places like Argentina.
Brazil however, has been notably absent from Chinese plans up until recently. With even the high-impact oil sector here seeing few Chinese companies involved in projects.
That now appears to be changing — given a slew of projects proposed by Chinese entities in Brazil over the past year. Including a $10 billion “dollars for oil” loan between China Development Bank and Petrobras.
Full article: This Region Is China’s Next Target For Resource Deals (OilPrice)