China chasing gold, iron in Sudan

Nov 6, 2006 (BEIJING) — China, already a heavy investor in Sudan’s oil industry, has signed deals to exploit the country’s gold and iron ore deposits, Sudanese Energy and Mining Minister Awad Ahmed al-Jaz said.

Production could start as early as 2007, he told Reuters in an interview on the sidelines of the China-Africa summit held in Beijing over the weekend. Nearly $2 billion of deals and around $5 billion of loans were agreed at the summit.

“We have a number of Chinese. Some are looking for gold mining and we have signed an agreement with them,” he said.

“Another company is working on iron, which is in the middle of the country, and towards the west,” Jaz added. He declined to name the firms involved or put a value on the deals.

Chinese firms are also interested in copper mining and new areas had been opened up for iron ore exploration, although no deals had been signed, the minister said.

Khartoum already has a long-term agreement with French miners, who export 8 tonnes of gold a year, said a Sudanese diplomat who declined to be named.

Despite mounting international concern over a vicious civil conflict in the Darfur region, China has been a firm supporter of Khartoum. It has imported over 14 million barrels of Sudanese oil this year and has lucrative business interests there.

The minister said he did not expect any oil deals to be signed during the conference but the government was keen to boost oil shipments to China and might sound out interest for a new refinery.

“(If) they bring the money we will give them more oil…the sky’s the limit,” he said.

“Our economy is moving very fast, we may need a new refinery…we feel that the Chinese have the intention to go forward with us.”

(Reuters)