Strength­en­ing global in­fra­struc­ture

NORINCO to ex­pand its foot­print in mines, power grids, com­modi­ties

China Daily (Latin America Weekly) - - Business - By ZHONG NAN zhong­[email protected]­

China North In­dus­tries Group Corp, a State-owned com­pany that makes high­tech prod­ucts for both de­fense and civil sec­tors, plans to in­crease re­source al­lo­ca­tion for more vis­i­bil­ity in global mar­kets.

This it in­tends to ac­com­plish by par­tic­i­pat­ing in global-scale events like the China In­ter­na­tional Im­port Expo that was held in Shang­hai from Nov 5 to 10.

It also aims to lever­age the Belt and Road Ini­tia­tive to fur­ther com­pete with es­tab­lished for­eign ri­vals in ar­eas like mines, power grid con­struc­tion and trad­ing in com­modi­ties.

Ex­ec­u­tives of China North In­dus­tries, which is also known as NORINCO, the in­ter­na­tional arm of par­ent NORINCO Group, said op­por­tu­ni­ties to ex­pand come from many coun­tries’ grow­ing de­mand for man­u­fac­tur­ing, in­fra­struc­ture and en­ergy de­vel­op­ment projects, es­pe­cially in fast-grow­ing mar­kets such as Pak­istan, Myan­mar, Namibia, Brazil and the United Arab Emi­rates.

Such coun­tries are fo­cused on sus­tain­able de­vel­op­ment against a back­drop of ur­ban­iza­tion and in­dus­tri­al­iza­tion. Their ser­vices and com­mu­ni­ca­tion sec­tors are grow­ing rapidly too, they said.

Zou Wen­chao, vice-pres­i­dent of NORINCO Group, said China’s new mea­sures to sup­port mul­ti­lat­er­al­ism and deep in­volve­ment in the Belt and Road Ini­tia­tive will help fa­cil­i­tate both goods and ser­vice trade ac­tiv­i­ties, as well as in­fra­struc­ture con­struc­tion in many parts of the world, and en­able stronger con­nec­tions with China.

The Bei­jing-head­quar­tered group has or­ga­nized more than 10 busi­ness meet­ings and sign­ing cer­e­monies dur­ing the first CIIE in Shang­hai, in ar­eas like high-end man­u­fac­tur­ing, min­er­als, ma­te­ri­als, agri­cul­tural and chem­i­cal prod­uct de­vel­op­ment.

It also formed new part­ner­ships with ca­pa­ble global com­pa­nies to jointly de­velop third-party mar­kets, par­tic­u­larly in economies re­lated to the BRI.

Dur­ing the CIIE, NORINCO sealed the deals with gov­ern­men­tal and busi­ness part­ners such as Guinean State Min­ing Co, Myan­mar Eco­nomic Hold­ings Co, and other firms from Su­dan and the United States to im­port cot­ton, cop­per, cobalt, baux­ite and au­to­mo­bile lubri­cant oil to meet the de­mand of China’s on­go­ing in­dus­trial and con­sump­tion up­grades.

NORINCO won a $145 mil­lion, five-year ser­vice con­tract for the se­cond phase of blast­ing and safety man­age­ment projects in Husab ura­nium mine in Namibia last month to sup­port the coun­try’s eco­nomic growth.

With $5 bil­lion of in­vest­ment by Chi­nese com­pa­nies such as China Gen­eral Nu­clear Power Corp, the Husab ura­nium mine project cur­rently is China’s largest in­vest­ment in the min­ing in­dus­try in Africa. Con­struc­tion work started in 2013 and was com­pleted at the end of 2016, and the mine has now en­tered its op­er­at­ing pe­riod.

“Win­ning this bid fully demon­strates the core com­pet­i­tive­ness of our abil­ity in the area of civil ex­plo­sion in in­ter­na­tional mar­kets and has gen­er­ated great mo­men­tum to speed up NORINCO’s pace of in­ter­na­tion­al­iza­tion for con­duct­ing ex­plo­sion projects in both mil­i­tary and civil sec­tors,” said Zhi Yulin, pres­i­dent of NORINCO and as­sis­tant gen­eral man­ager of NORINCO Group.

“As NORINCO has de­vel­oped a world­wide op­er­a­tional net­work with sta­ble growth in de­fense prod­ucts, pe­tro­leum, min­eral re­sources, in­ter­na­tional eco­nomic and tech­ni­cal co­op­er­a­tion, and op­er­a­tion of civil prod­ucts, the project will fur­ther sup­port our group’s ‘ go-global’ strat­egy, as well as im­prove sales of China’s mil­i­tary and civil prod­ucts in more global mar­kets.”

By the end of Au­gust 2017, NORINCO had in­vested in 42 projects in 23 coun­tries and re­gions in­clud­ing Myan­mar, Iraq, Kaza­khstan and Laos, with a cu­mu­la­tive to­tal amount of $5.49 bil­lion.

Let­padaung cop­per mine, a mine in­vested in and op­er­ated by NORINCO in north­west­ern Myan­mar, re­ported ear­lier this year that its cop­per pro­duc­tion ca­pac­ity ex­ceeded 10,000 met­ric tons a month, build­ing a solid foun­da­tion to reach the an­nual tar­get of 100,000 met­ric tons for 2018.

“The de­vel­op­ment of Let­padaung project has pro­vided a ma­jor fi­nan­cial boost for the lo­cal gov­ern­ment and the sur­round­ing area over the past three years, bring­ing in mil­lions of dol­lars and pro­vid­ing thou­sands of jobs and so­cial wel­fare,” said Zhi.

The Let­padaung cop­per mine’s work started in 2015 and its op­er­a­tion turned out to be a ma­jor suc­cess for the re­gional eco­nomic growth. In 2016, the mine pro­duced a to­tal of 20,000 tons of cath­ode cop­per and had helped lo­cal gov­ern­ment to earn more than $14 mil­lion in rev­enue.

“China’s pro­posal to ex­plore third-party mar­ket co­op­er­a­tion could bring ben­e­fits to both Western na­tions and de­vel­op­ing coun­tries in­volved in the Belt and Road Ini­tia­tive, with­out caus­ing a clash of in­ter­ests,” Zhi said. “Projects in­volv­ing China, France and some French­s­peak­ing African coun­tries are a case in point.”

NORINCO also com­pleted two trans­mis­sion line projects in Laos in Septem­ber to meet the de­mand of the coun­try’s Na­tional Grid Plan for 2016-20.

It is de­signed to bring con­ve­nience and pro­vide elec­tric­ity to the north­ern and cen­tral prov­inces of Laos. It is also a mile­stone project of both sides ac­tively pro­mot­ing China-Laos eco­nomic co­op­er­a­tion in re­sponse to the Belt and Road Ini­tia­tive.

China’s cen­trally-con­trolled State-owned en­ter­prises have been a ma­jor force driv­ing the Belt and Road Ini­tia­tive, with their re­spec­tive projects, said Li Jin, chief re­searcher at the China En­ter­prise Re­search In­sti­tute.

“Widen­ing the in­ter­na­tional chan­nels and con­struc­tion project net­work can help Chi­nese equip­ment, in­fra­struc­ture and ser­vice providers en­hance their lo­cal­iza­tion abil­i­ties, as well as gain sup­port via lo­cal em­ploy­ment,” said Li.


Kazakh work­ers and engi­neers par­tic­i­pate in the open­ing cer­e­mony of a car­bon diox­ide treat­ment plant jointly built by NORINCO in Kaza­khstan.


Em­ploy­ees from NORINCO work at a pipe­line project on the site of the al-Ahdab oil field in Iraq.

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