MercoPress. South Atlantic News Agency

China fastens Cuban nickel.

China has agreed to invest 500 million US dollars in the Cuba's nickel industry, a huge boost for the island's economy.

The announcement was one of sixteen trade, cooperation and investment agreements covering petroleum, biotechnology, education, telecommunications and tourism signed Monday between visiting Chinese president Hu Jintao and Fidel Castro.

"Cuba is one of China's largest commercial partners in Latinamerica", pointed out President Hu Jintao who also praised Socialism "as the only real hope for peace and the survival of the human species".

China is Cuba's third most important trade partner behind Venezuela and Spain and represents some 10% of the country's foreign commerce with nickel a one of its key exports and a vital commodity for China. Half of China's stainless steel included Cuban nickel.

The nickel deal involves the construction of a processing plant in Moa, in eastern Cuba with an annual capacity of 22,500 tons, which will be owned 51% by Cuba and 49% by China. A second joint company will explore nickel deposits in central Cuba.

Cuba is already the world's fourth largest producer of nickel totalling 70,000 tons equivalent to 800 million US dollars.

Additionally China has included Cuba on its list of official tourism destinations.

China also agreed to defer ten years repayments of loans extended to Cuba between 1990/94.

President Hu Jintao also held talks with Fidel Castro's brother Raúl Castro who is Minister of Defence and the apparent successor if anything were to happen to the longest living dictator who has been in office since 1959.

Mr. Hu Jintao's arrival in Havana on Monday coincided with the inauguration of the first Cuba-China Investment and Trade Forum with the participation of 400 businessmen exploring for new bilateral business ventures.

"Cuba is a heavyweight in Latin America" said President Hu Jintao who underscored the country's "admirable successes" achieved under Castro over the past 45 years. "Our most sincere hope is that the Cuban people continue relentlessly along the path of building socialism" added the Chinese president recalling Cuba was the first Latin American country to establish diplomatic ties with mainland China in 1960.

Although relations cooled during the Sino-Soviet rift, Havana and Beijing overcame their differences following the end of the Cold War.

Former Chinese Premier Jiang Zemin visited Cuba in 1993 and 2001, while Castro went to China in 1995 and 2003.

Mr. Hu Jintao two days visit to Cuba was the last leg of his trip to Latinamerica which included Brazil, Argentina and Chile where he attended the Asia-Pacific Economic Cooperation summit.