China Investment Corp (CIC), the sovereign-wealth fund, said yesterday that it will invest $500 million USD in SouthGobi Energy Resources, a Vancouver-based miner whose businesses are mainly located in Mongolia, reported Market Watch
SouthGobi said the fund will be used for developing its projects in Mongolia. For example, it plans to expand the annual output of the flagship Ovoot Tolgoi coal mine to eight million tons from the current 1.4 million tons.
Since the financial crisis broke out early last year, the CIC has been seeking opportunities to spend the weakening American dollars it holds, which have been reported to be as high as $300 billion USD. Previously, it had made a string of purchases in energy resources and commodities from Kazakhstan to Indonesia.
One day earlier, the nation's largest oil and gas provider, Beijing-based Sinopec Group, inked a $9 billion USD deal with Kuwait to build a mega refinery and petrochemical plant in South China's Zhanjiang City, Guangdong province, reported Shanghai Daily
The local government expects the deal will get the approval from Beijing as early as next April, a month after the submission of feasibility and impact reports.
The same day, Sinopec also announced it discovered a huge natural gas field in Southwestern China. The reserve is estimated to be more than 120 billion cubic meters, reported local media Shanghai Securities News