Bloomberg reported that Tongling Nonferrous Metals Group Holdings Company and China Railway Construction Corporation may invest as much as USD 3 billion in a copper project in Ecuador, as China seeks to control more commodity assets to feed its economy.

Mr Hu Guobin VP of a venture set up by the 2 Chinese companies for the project said that production at the Corriente Copper Belt may start in 2013. Annual copper in concentrate output would start at 30,000 tonnes and double a year later.

Chinese companies spent more than USD 30 billion last year buying oilfields and mines as two decades of economic growth averaging 10.1% made China the world’s biggest metal and energy consumer. Copper prices have doubled in the past 5 years, driven by demand in the third largest economy.

Mr Heng Kun an analyst at Essence Securities said that “The investment will significantly lift Tongling’s copper ore self sufficiency and investors expect the assets to be injected into the listed unit later.”

(Sourced from Bloomberg)