Wednesday, 9 January 2013

China eyes natural resources in Cambodia

The Irish Times - Tuesday, January 8, 2013


CLIFFORD COONAN

China’s influence in Asia is sure to keep growing in 2013, and two Chinese companies have set out their stall early, signing an €8.6 billion deal to build a new railway, port and steel mill in Cambodia.

As with investments in Africa, accessing natural resources is a big part of the motivation behind the spending.
China Rail Group will co-operate with Chinese-owned Cambodia Iron and Steel Mining Industry, to jointly build a 404km railway from Preah Vihear province to Koh Kong province in the southwest.
They will also build a seaport in Koh Kong to support the metal mining industry in Preah Vihear. A spokesman told local media construction should begin by July.

Chinese companies have invested heavily in Cambodia over the last 10 years in projects ranging from hydroelectric dams to agriculture.

Late last month, the Cambodian government gave the green light to construction of its first oil refinery. Sinomach China Perfect Machinery Industry Corp was given the go-ahead to invest €1.77 billion.

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