Dec 10, 2009
China, Energy and Equity – Institutional investors or Private Equity
For the people who liked our private equity in China add-in, the world has moved into chinese energy with institutional participation by China Life(LFC), CIC and Wilbur Ross
Longyuans $2.2 billion IPO, the joint 8th-largest global offering so far this year, drew keen interest from investors eyeing the fast-growth renewable energy sector, and attracted wealth fund China Investment Corp CIC, U.S. billionaire investor Wilbur Ross and China Life Insurance Group.China aims to boost wind-generated power to 100 GW by 2020 with investments possibly worth over $150 billion, which will likely make it the world leader in wind energy.Renewable energy accounts for just a fraction of 1 percent of Chinas total electricity output. The coal-dependent nation hopes to raise that to 10 percent by 2010 and 15 percent by 2020.
via China Longyuan debut gains checked by U.N. rebuff| Reuters.
China continues leadership in African infrastructure
Also ( see our earlier China in the third world post ) China has seemingly made some progress in Guinea (below) and Ghana where OMEL (ONGC Mittal) is planning to withdraw and the Ghana govt is looking at CNOOC for support) We have more details from Guinea
China launches a new “Scramble for Africa” as it attempts to secure natural resources
Chinese interest in acquiring “strategic assets” continues unabated, with recent acquisitions & investments in a number of companies in Australia & South America.
As we saw in last weeks eye bullish approach regarding Nigerian oil, China is looking a little further afield & it’s all seeing eye has settled upon Africa. In what is quickly becoming a replay of the late Victorian era “Scramble for Africa”, the latest country to be courted is the Republic of Guinea as China seeks to gain access to the West African nation’s large mineral deposits. Instead of glass beads, whiskey & cowrie shells, Chinese negotiators are offering eye watering amounts of money to be invested in infrastructure projects.
The impoverished nation possesses more than 25 billion tonnes of bauxite ore, with more than 150 mineable deposits having been prospected to date. Additionally, Guinea’s mineral wealth includes more than 4 billion tonnes of high-grade iron ore, significant diamond and gold deposits & as yet undetermined quantities of uranium. Bauxite exports account for more than 75% of GDP, according to Wiki sources.
Guinea’s Minister for mines was quoted in the Financial Times as saying that the Guinean government is in talks with the China International Fund (CIF) regards a $7Bn investment into a number of projects including infrastructure, minerals & oil.
“Instead of just giving natural resources… in exchange for promises of developing our infrastructure, we decided to take the joint venture approach and co-own not only the infrastructure development companies and projects, but also whatever natural resource companies or projects are developed jointly.” said Mohamed Thiam “All the government’s stakes in various mining projects will be put in that mining company. Future mining permits or concessions that the government decided to develop on its own will be put in that company,”
China still doesn’t seem to be too picky regarding who it does business with, as the present Guinean government is a military dictatorship that has recently put down a bloody coup last month. 150 people were killed on September 28, when troops opened fire on a crowd gathered in the capital Conakry, in order to protest at ongoing corruption in Captain Moussa Dadis Camara’s rule.
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