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The China Development Bank promises to save China Union's US$2.68 Bong Mine project but will take an 85% stake to provide the finance and pay Monrovia

The US$2.68 billion China Union plan to revitalise Liberia's Bong Mines has not taken off, almost a year after it was first signed. Initial concerns...

LIBERIA | INDONESIA

The Liberian contribution to the stir-fry

GHANA | SOUTH KOREA

Mortgages and minerals

Accra is leading the way forward on housing development, bringing in South Korean company STX Group to build 200,000 ho...

BLUE NOTES

Rather than quietly complaining, Africa is using its Asian alliances to shake up the Copenhagen climate summit. A so-called BASIC (Brazil, South Africa, India and China) draft, promising developing world emissions cuts, was offered but has not gained traction. Africa's insistence that the summit should result in the transferring of resources from the developed world to the developing world has stalled proceedings. This stance is supported by environmentalists and aid agencies which are critical of what they perceive as the developed world's attempts to bypass the penalties of the Kyoto agreement. African demands have been clear: carbon emissions must be reduced globally and, crucially, financial support offered by wealthy countries. Ethiopian Premier Meles Zenawi, chief negotiator for the African Union's 52 states, did not name a figure in these talks but has previously called for as much as US$67 billion per year. The AU's Copenhagen mission regards Africa as the 'primary victim of global warming' and as such should be compensated accordingly, taking into account past losses and the lack of future gains. Meles has been assured of China's support by Chinese Premier Wen Jiabao and said that similar support can be expected from India.

GHANA | CHINA

China's positioning in the Kosmos

Although Chinese companies have not yet bid for Kosmos's 30% stake in Ghana's Jubilee field, the China Development Bank has bought Beijing's companies a great deal of capital. The Ghana National Petroleum Corporation wants to block United States oil major ExxonMobil from going through with its US$4 billion offer for Kosmos's share and buy it itself. On 8 December, the CDB, the Ghanaian Finance Ministry and the GNPC signed a strategic cooperation agreement to have the CDB finance future infrastructure projects on the Jubilee field. Although no financing total was announced at the deal's signing, it is worth several billion dollars and will enable Ghana to play a bigger role in the exploitation of its own oil and gas reserves. Finance Minister Kwabena Duffuor's initial request was for $2 bn. in September when negotiations between Ghana and the Chinese bank began (AAC Vol 2 No 11). Production from the 1.8 bn. barrel Jubilee field is expected in 2010.

NIGERIA | INDIA | SOUTH KOREA

It's not over until it's over

After winning a court battle over the Nigerian government's attempt to cancel its oil production licences, South Korea's Korea National Oil Corporation is offering to finance billions of dollars of new energy projects - partly to ensure that the dispute with Abuja does not erupt again. Soon after the judgment found in KNOC's favour on 20 August, the company's officials met in Abuja with Odein Ajumogobia, Nigeria's Minister of State for Petroleum Resources, to suggest an out-of-court settlement to the case it had just won in court.

NIGERIA | SOUTH KOREA

A useful deal in the Delta

South Korea's state-run Land and Housing Corporation is offering investments and technical cooperation in the oil-rich Niger Delta, a move that might help the ambitions of Seoul's energy companies and appeal to President Umaru Yar'Adua's efforts to win hearts and minds following his amnesty offer to Delta militants in October. On 1 December in Abuja, Vice-President Goodluck Jonathan received a delegation from the Corporation. The presidency said the Koreans had offered to 'partner with the Nigerian government in the development of new towns and civil infrastructure', and were 'also willing to assist in establishing water purification plants'.

AFRICA | INDIA

New men for a new push

The second iteration of India's Congress Party-led federal coalition has augmented its diplomatic, strategic and commercial thrust into Africa in pursuit of hydrocarbons, minerals, agricultural land and markets. By selecting Shashi Tharoor as junior foreign minister in charge of Africa in May, Prime Minister Manmohan Singh hopes to exploit his contacts and experience as a former UN official who has interacted closely with African states for many years on refugee issues and peacekeeping operations.

AFRICA | INDIA

Grease for the wheels of friendship

At the India-Africa Hydrocarbon Conference in Delhi on 8 December, External Affairs Minister S.M. Krishna preached the benefits of 'a close alignment on major international issues and an abundance of socio-political goodwill'. Some 15 African countries, including Algeria, Angola, Benin, Egypt, Gabon, Nigeria and Sudan, participated in the conference, a much smaller turnout than at the November 2007 inaugural meeting. Addressing the conclave, Petroleum Minister Murli Deora said Delhi was eager to participate in new opportunities in Angola, Ghana, Sudan, Nigeria, Uganda and Côte d'Ivoire. India's hydrocarbon consumption has grown at an average rate of 3.5% for the last decade and is expected to double by 2020. Deora said Delhi's firms are interested in 'farm-in' activity in Libya, Algeria and Egypt. Dehli also offered expertise in laying oil and gas pipelines, establishing liquefied petroleum gas terminals and depots, and marketing and distribution.

ZIMBABWE | CHINA | BRIEFING

All that glitters is mine

The details of the US$8 billion China Sonangol/China International Fund are becoming more apparent as subsidiary deals are signed. On 7 December, Zimbabwe's Transport and Mining Ministries signed mining and construction deals with China International Fund and the Sino-Zimbabwe Development Company, a joint venture between the Harare government and the Hong Kong-based companies, modelled on the deal signed in Guinea in October (AAC Vol 2 No 12).

GABON | CHINA | BRIEFING

Hurry up, wait and renegotiate

Gabon's politicians continue to question the delays in the starting-up of the Bélinga iron ore mine and its associated infrastructure works. But financing issues and constant threats of renegotiation have not inspired confidence. As may happen to the China International Fund deal in Guinea (AAC Vol 2 No 11), in Gabon, a change in government has introduced calls for the re-evaluation of Chinese-backed projects. During his first policy pronouncements of a new term in office, new President Ali Ben Bongo Ondimba's Prime Minister Paul Biyoghé Mba said that the US$3.5 billion iron ore deal agreed in 2008 might not stand as is. In further bad news, in July, China Export-Import Bank announced that it would not support the Chinese consortium behind the project, due in part to worries about feasibility studies and concerns over public opposition.

BLUE NOTES

Rather than quietly complaining, Africa is using its Asian alliances to shake up the Copenhagen climate summit. A so-called BASIC (Brazil, South Africa, India and China) draft, promising developing world emissions cuts, was o...

AFRICA | ASIA | BRIEFING

World Bank to link Africa and Asia

World Bank President Robert Zoellick's plan to bring the Asian hyper-economies into the international development community is now bearing fruit. On 3 December, Zoellick told London's Financial Times that Chinese Commerce Minister Chen Deming showed 'not only willingness but strong interest' in 'moving some of the lower-value manufacturing facilities to sub-Saharan Africa.' The move is in the same vein as the US$500 billion Chinese 'Marshall Plan' promoted by former deputy tax administration head Xu Shanda in August (AAC Vol 2 No 10).


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