China acquires Teck, Herald?

Teck Resources, a top producer of zinc, copper, and metallurgical coal, said last Friday that it will sell a 17.2% stake to China Investment Corp for US$1.5 billion. 

While CIC said that the acquisition is for investment purposes, this is clearly part of China's "go abroad" policy in acquiring resources to support its manufacturing industry. China is currently the largest importer of most metal ores, including zinc and copper. 

Last year, Zhongjin actually teamed up with PT Aneka Tambang (ANTM) Tbk to acquire Herald Resources (HER), Australian-listed company which controls zinc/lead concessions of PT Dairi Prima Mineral in North Sumatra. The consortium lost the battle to Indonesian PT Bumi Resources (BUMI) Tbk.

Herald has suspended ground works in Dairi project due to financial crisis and the fall of commodity prices. Last week, BUMI said it opens for a possible cooperation in developing the project.

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