February 12, 2013 (Source: CBC News) — Canada’s ambassador to China says money from the Asian country is likely to keep pouring into Canadian resource projects.
But Guy Saint-Jacques also says he thinks those dollars will increasingly flow into mining and forestry as well as energy development.
“I expect that the interest will increase on the mining side,” he said in an interview with The Canadian Press after speaking to an audience at the University of Alberta on Monday.
“What I expect also is maybe they will start to get interested in the forestry sector. There’s already investment in pulp manufacturing. I think they are starting to look at potential minority participation in a number of companies.”
Chinese state-owned companies have already staked out a significant foothold in Alberta’s oilpatch — especially in the oilsands after the federal government approved a $15-billion takeover of Calgary-based Nexen by China National Offshore Oil Corp. late last year. PetroChina has also expressed interest in owning a share of the proposed Northern Gateway, which would ship oilsands bitumen to waiting tankers on Canada’s West Coast.
Push into mining
The amount of Chinese money flowing into energy development is still three times the size of the amount going into mining. But Saint-Jacques, a fluent Mandarin speaker who was appointed ambassador last fall, said that country is looking at other resource opportunities as well.
A Chinese-controlled company now has a plan in front of northern regulators to build major open-pit lead, zinc and copper mines along Canada’s Arctic coast.
There is Chinese interest in northern Ontario’s Ring of Fire mining region and in Saskatchewan’s potash reserves as well, said Saint-Jacques.
In his speech, Saint-Jacques pointed out that Canadian mining exports to China already eclipse Canada’s entire exports to Germany.
Forestry exports are also increasing rapidly.
“Our wood exports to China have grown in spectacular fashion; in fact, 22 times between 2002 and 2012.”
The Chinese, who haven’t traditionally built homes from wood, are beginning to realize its advantages in terms of construction ease and insulation, Saint-Jacques said.
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