Recent dealings and articles regarding ECE :Arafura...

Recent dealings and articles regarding ECE :

Arafura resources:
Shareholders at yesterday's extraordinary general meeting unanimously voted in support of the Chinese group

placement, East China Mineral Exploration & Development Bureau's (ECE) will increase its investment in Arafura to 25 percent.

In June 2009, Arafura issued the first tranche placement of 28.3 million shares to ECE, for $8.5 million, at 30 cents per share.
September 18, 2009

Arafura shareholders voted to place a second allotment of 36.1 million shares to ECE at 40 cents per share, for a cost to ECE of $14.44 million.

Note ARU share price around this time !

Arafura's managing director, Alistair Stephens, believes the imposition of these dramatic controls is a reflection of the vital strategic nature of rare earths, a reflection of China's domination in the rare earths industry at present, and recognition that China's resource supply, while large, does not meet internal demand growth particularly in the medium term.

If China is to make inroads on its environmental standards and reduce pollution levels, then rare earths play a pivotal role. This is a signal that China's rare earths are for its own development, and that current recoverable reserves may not meet their own needs.






Another:

East China Mineral Exploration and Development Bureau (ECE) is expected to acquire an iron ore mine in Brazil, ECE signed an intent agreement with Bernardo de Mello on March 25, offering $1.2 billion to buy the entire property rights of the Jupiter project in Minas Gerais of northeastern Brazil, where most of Vale?s iron ore mines are located.
The deal is likely to be completed by the end of the year, Shao Yi, head of ECE told the paper. He estimated the project would bring in $800 million in revenue and $300 million in profit every year. Return on the investment could reach 20 percent, according to Shao.

Another

Namibia focused copper miner Weatherly International LON WTI has signed a non-binding letter of intent with a wholly owned subsidiary of East China Mineral Exploration and Development Bureau (ECE) to jointly develop Weatherly's Berg Aukas lead-zinc mine in northern Namibia. Under the terms of the agreement, ECE will provide funding of ?4.8 million to acquire an interest of 65% in NewCo,



These investments clearly indicate that China is aggressively securing rare metal deposits around the world. Given China?s massive consumption of rare metals, their desire to secure supply sources makes sense. The concern however is their continued acquisition would enable them to control both supply and prices thus leaving the rest of the world at their mercy!

Point is Arafura ECE 25 % involvement 15 mill for NTU 51% -go figure. This money is peanuts for ECE and a bargain basement price at that to get in on the ground floor.

Common sense should prevail with the FIRB allowing minority shareholders a bite of the cherry further down the track if this resource was to be developed further.

Unfortunately common sense is not common. I?m all for key stakeholders investing in a company but for whose benefit and at at what cost. Time will tell !!!!