Following is a story from the Shanghai Daily from 16/11 (last...

Following is a story from the Shanghai Daily from 16/11 (last Thursday) obviously picking up on the story in Bloomberg. This deal with Allied is preety big news and has been highly publicised globally. It probably would not look good for the Chinese credibility to back out now.

Von.

Zijin may bid for Peruvian copper deposit
Xiao Yu
2006-11-16
ZIJIN Mining Group Co, which runs China's largest gold mine, may bid for Peru's fourth-largest copper deposit to diversify and bolster reserves amid soaring demand for metals.

"We are interested in the project, and are seeking Chinese government approval to bid," Chairman Chen Jinghe, said in Beijing yesterday. The Michiquillay deposit will cost US$700 million to develop, according to Proinversion, the Peruvian state agency for promoting private investment.

Chen is tapping Zijin's increased earnings to buy mines in China and overseas. The world's fastest-growing major economy is taking stakes in industries from Australia to Mexico to guarantee resources for its booming economy, Bloomberg News said.

"Chinese companies are increasing overseas investment as it's government policy to encourage them to look for raw materials outside and to protect domestic resources," said Lin Hai, an analyst with Guotai Asset Management Co.

Zijin's stock has almost trebled this year, giving the company a market value of HK$50.1 billion (US$6.4 billion). It rose 0.8 percent to close at HK$4.80.

Zijin signed an initial deal in September to pay at least A$18 million (US$14 million) for 10 percent in Allied Gold Ltd, an Australian metals-exploration company. It agreed in October to pay 8.2 million pounds (US$15 million) for 20 percent in Ridge Mining Plc, giving China its first foothold in South Africa's platinum industry, the world's biggest.