Agreement signed to boost Chinese investment in WA's major resources projects

23/4/04 State Development Minister Clive Brown today witnessed the signing of a Memorandum of Intent (MOI) that could pave the way for greater Chinese investment in Western Australia's major energy and resources projects.

23/4/04
State Development Minister Clive Brown today witnessed the signing of a Memorandum of Intent (MOI) that could pave the way for greater Chinese investment in Western Australia's major energy and resources projects.
The MOI was reached between the China Industrial Overseas Development and Planning Association (CIODAPA) and the WA Department of Industry and Resources (DoIR), through its Shanghai representative office.
The agreement is the first of its type to be entered into by the WA Government and is believed to be the first agreement of its type to be entered into by an Australian government with China.
The agreement recognises that economic growth in China will result in continuing high demand for resources and that significant opportunities exist for Chinese investment in WA's LNG, iron ore, alumina, nickel and pulp industries to secure supply.
Speaking from Beijing, State Development Minister Clive Brown said the MOI was a significant milestone in WA's rapidly developing relationship with China.
"The State's rapidly developing trading relations with China are playing an important role in maintaining WA's position as Australia's leading State economy," Mr Brown said.
"Over the last 18 months, we have seen the $25billion LNG export deal between the North West Shelf and the Guangdong Province and a similar agreement between the Gorgon Joint Venture and CNOOC.
"We have also seen a record iron ore export deal between BHP Billiton and Chinese steel mills.
"Today's agreement recognises the potential for WA to play an even greater role in China's economic development and could pave the way for increased Chinese investment in new major energy and resources projects in this State."
The MOI outlined a number of joint WA/Chinese initiatives to boost investment, including:

  • the establishment of a China-WA Investment Facilitation Working Group, to meet regularly in China and exchange information on potential investment opportunities in WA and the progress of major energy and resources projects involving potential Chinese investment in this State;
  • the staging of an annual seminar by CIODAPA and DoIR focusing on the investment environment and opportunities in the energy and resources sectors in WA;
  • the staging of a seminar focusing on LNG and iron and steel (including steelmaking raw materials) in the fourth quarter of 2004; and
  • the conducting of a joint study on possible strategic co-operation between China and WA, including the potential for processing here to satisfy China's long-term demand for steel.
Mr Brown is currently on an 11-day trade mission to China that will include a broad range of industry and governmental meetings in Guangzhou, Beijing, Shijiazhuang, Shanghai, Hangzhou and Yiwu.
The Minister is accompanied by 16 members of the WA Chinese Chamber of Commerce and will be joined by senior representatives from Australia LNG, Gorgon Australia, BHP Billiton Petroleum and the Fortescue Metals Group.
Minister's office: 9222 9699