Cooperation between the natural gas industries of China and Russia is expected to make great progress, Assistant Foreign Minister Cheng Guoping said Tuesday.
'Related departments and enterprises of the two countries are negotiating based on the principles of mutual benefit and common development,' Cheng said during a news briefing.
'If negotiations go smoothly, China-Russia natural gas cooperation is expected to see great achievements' before Chinese President Hu Jintao pays his state visit to Russia from June 15 to 18, Cheng said.
Cheng said China and Russia have great potential for cooperation in the industry.
'The cooperative initiatives that the two countries are discussing are unprecedented,' Cheng said.
'During the negotiations, both parties will have their own standpoints. We believe that companies from both countries will reach agreements based on the principles of friendly consultation and mutual ...view middle of the document...
China hopes that leaders of both countries will jointly plan the direction for the development of bilateral relations over the next decade, Cheng said.
Hu's visit is expected to enhance strategic mutual trust and mutual support on issues concerning core interests and deepen communication on issues of common concern, Cheng said.
Hu will pay state visits to Kazakstan, Russia and Ukraine from June 12 to 20. Hu will also attend the upcoming Shanghai Cooperation Organization summit in the Kazakh capital of Astana.
China intends to invest in Kimkan, a Russian ore mine in Siberia. The project will be financed by a syndicate led by the Industrial and Commercial Bank of China (ICBC), Voice of China reported on June 13.
ICBC will offer $400 million in loans for the overseas investment. After mine tapping, the Russian mining company, in charge of the project, will transport the ores to China via railway.
The country (Russia) is also planning the construction of a railway bridge across the Amur River (Heilongjiang River) to facilitate transport between the two countries.
Viktor M.Ryabov, a Russian offical representative, said the Chinese inspection group showed great interest in KimKan ore mine. The ore reserve will have the capacity to produce as much as billions of tons, enough to make over a billion units of vehicles.
The deal will serve as alleviation for China’s burning demand in iron ore, relieving the pressure exerted on the country from striking international prices as well as lessen dependence on Australia and Brazil.
The three global giants will increase the metal price for the third quarter 30 percent higher than in the second quarter, despite the slash of steel prices. Broken Hill Proprietary Billiton Ltd, one of the ore giants will trade in actual prices beginning next month.
“What China can do is to reduce procurements,” Xu Zhongbo, professor from the Metallurgic Institute of Beijing Science and Technology University, said.