for sask3 chinese buy up in OZ

[malleefarmer]

http://www.farmweekly.com.au/news/nationa
lrural/agribusiness/general-news/more-wa-
farms-for-china/2636918.aspx

hope the link works

[ajl]

Land prices not high enough in OZ that
you need the Chinese to come in an bid
them up for you?

[Hopperbin]

Sask3 would probably go for a deal like this,

Earlier this month, Chinese conglomerate Shanghai Zhongfu clinched a $700 million deal to lease more than 13,000 hectares of prized farm land in the Kimberley region for 50 years for sugar production,,

Putting that into acres it works out to 1076 per acre per year for 50 years. Not sure why anyone would rent that far out as inflation is going to eat the profit in the end. I am sure they have it figured out I hope. I would sure like to get more info on that deal. Just for interest sake. Is that lazer levelled land, with irrigation? Does the owner still pay some upkeep?

[burnt]

As if the Chinese ever worried about keeping their end of a deal when things went against them.

[Hopperbin]

I guess not all Chinese investments are not working well as these companies are finding out making mine components in China and setting them up in western Australia can be costly and time consuming.

A source close to Hong Kong-based holding company CITIC Pacific Ltd (CPL) said Monday the company will try to speed up development of its iron ore projects in Australia, following news that the company may fine China Metallurgical Group Corporation (MCC) for delays in the projects.

The company's priority is to bring the production lines into operation as soon as possible, the source told the Global Times Monday.

MCC may face an estimated fine of 2.9 billion yuan ($463 million) for a three-month delay, Beijing-based Investor Journal reported Sunday. The first production line was supposed to start running by the end of August this year.

CPL bought two mines from Australian businessman Clive Palmer in 2006 at a price of $415 million but they have not yet started operating due to delays.

In August 2007, MCC signed a deal with Sino Iron Pty Ltd, a subsidiary of CPL, to develop the iron ore projects, which are located in western Australia.

By the end of June this year, the expected cost of developing the two mine projects had reached $7.8 billion, 86 percent higher than CPL's expectation of $4.2 billion in 2009.

CPL publicly blamed MCC for the latest delay and told the Global Times last week that it was mainly a result of problems with MCC's mineral processing technique.

Calls to MCC went unanswered Monday.

However, MCC reportedly responded that it had proceeded as required and said that many of CPL's requirements were unreasonable. Most of the facilities are custom-made in China, for instance, which makes it time-consuming and costly to then apply them in Australia, the Investor Journal quoted an unnamed insider at MCC as saying.

Industrial analysts said it was a pity that such a huge investment, which once carried huge hopes, should result in these recriminations. But it also serves as a warning.

"When meager profits or even losses are suffered after high original expectations, controversy comes as a result," Zhang Jiabin, a senior researcher with steel industry portal umetal.com, told the Global Times Monday, noting that it will not be easy to fine MCC 2.9 billion yuan.

It is a huge sum, and deciding where responsibility lies will not be easy, Zhang said.

The timing of market entry is crucial for the profit margin of iron ore projects, Zhang Lin, a senior analyst at Beijing Lange Steel Information Research Center, told the Global Times Monday. "CPL has missed the golden period, and even if it starts operation this year, it will be hard for it to make money in view of the current low prices."

[Hopperbin]

then there are deals like this. A Chinese company says they would intend to spend 200 million developing a 300sq km eco tourist zone in Iceland. and rent the land for 6 million for 99 years. Reading that one does not know if its 6 million per year or 6 million in total. Anyways it should be good for iceland, if I was in the gov't I would demand the 200 million be put into a bank account non refundable and controled and released and auditted by the icelandic gov't to be used for their ecotourist facility. No doubt the majority of visitors will be from China as most of the rest of the world unless I am off don't consider a Chinese company good eco ly. sounds like it could be a big bust. Iceland should take a non refundable 200 million intent of investment first.

Beijing Zhongkun Investment Group Co will sign a land lease and development agreement with the Icelandic government at the end of October or in early November, the company told the Global Times Monday.

The company plans to lease 300 square kilometers of land in the northeastern part of Iceland with the rent of about $6 million for 99 years. The company plans to turn the site, about 0.3 percent of the country's total land area, into an eco-tourist resort.

Zhongkun refused to reveal more details before signing the agreement but expressed its confidence in this investment, as Iceland, near the North Pole, has unique natural landscapes while a less developed tourism market compared to the markets in North America and Western Europe.

The cooperation between Zhongkun and Iceland will bring convenience to Chinese tourists and job opportunities to local residents, a spokesperson for the company, who declined to be named, told the Global Times.

According to an initial development plan sent to the Global Times by e-mail Monday, the company will construct a five-star hotel and outdoor recreation facilities like golf links and racecourse with an investment of $200 million.

The company is also considering developing resorts in other northern European countries, like Denmark and Finland, Beijing Morning Post reported Monday, citing earlier remarks made by Huang Nubo, CEO of Zhongkun Group.

"It's a good timing for Chinese real estate companies to invest in European countries that are suffering from sluggish economy, as they could get land at lower prices," Song Ding, director of the Tourism and Real Estate Industry Research Center with the Shenzhen-based China Development Institute, told the Global Times Monday.

Although many European countries' domestic economies are stagnant, they are still providing Chinese investors with promising markets, as their financial investment systems are mature, which is good for their long-term development, according to Song.