MercoPress. South Atlantic News Agency

Chile-China agree “copper strategic alliance”

Chile and China agreed the creation of Joint Corporation to exploit Chilean copper and so ensuring a steady supply to China for the next fifteen years with an initial financial support of 550 million US dollars which could reach 2 billion US dollars.

Chilean Foreign Affairs minister Ignacio Walker on an official visit to Beijing was present when the agreement was signed by the government owned companies China Minmetals and Chile's Copper Corporation, Codelco, and the Chinese Development bank that will finance the operation.

"Excellent relations for over 35 years with bilateral trade reaching 5,3 billion US dollars and the creation of a joint corporation will further boost cooperation with China making Chile the spring board into Latinamerica", said Mr. Walker.

The Chilean minister who described the operation as a "copper strategic alliance" revealed that both countries are discussing a free trade agreement which could be signed by the end of 2005, the "first of its kind between China and a Latinamerican country".

"A free trade agreement Chile-China would be very emblematic", said Mr. Walker adding that the copper strategic alliance will help bring investment to Chile and further exploit Chilean copper mines.

In the first stage the agreement contemplates investing fresh funds in Codelco which will enable a copper supply of 56,000 tons per annum to China for fifteen years.

"It's an advance payment that could expand to two billion US dollars", said Mr. Walker.

Minmetals (China non ferrous metals Co. Ltd.) is the leading Chinese metals company and Codelco the world's largest copper producer. The understanding for the joint corporation was reached during Chinese president Hu Jintao's visit to Chile at the end of last year.

"The joint exploitation of copper resources in Chile is like a just born baby which faces a future full of hope", remarked Zhou Zhong Shu Minmetals president.

China's Development Bank president Zhao Yian Ping underlined the importance of the agreement which is "a positive example for Chinese large companies' overseas investments".