WORKING PAPER

Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors

Huang Wenbin Andreas Wilkes

Working Paper 81

Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors

Huang Wenbin World Agroforestry Centre, China and East Asia Node, Beijing Andreas Wilkes World Agroforestry Centre, China and East Asia Node, Beijing Working Paper 81

© 2011 Center for International Forestry Research All rights reserved

Huang, W. and Wilkes, A. 2011 Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors. Working Paper 81. CIFOR, Bogor, Indonesia.

Cover photo by Iain Ding Ministry of Commerce (MOFCOM) complex on Chang’an Avenue in Beijing. MOFCOM serves Chinese business interests both at home and overseas and its support is behind many of China’s recent international business expansion endeavors.

CIFOR Jl. CIFOR, Situ Gede Bogor Barat 16115 Indonesia

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Any views expressed in this publication are those of the authors. They do not necessarily represent the views of CIFOR, the authors’ institutions or the financial sponsors of this publication. Table of contents

Abbreviations v Acknowledgements v Summary vi 1 Introduction 1 2 Approvals for investment by Chinese companies in Africa 2 2.1 Trends in investment approvals 2 2.2 Investment destinations of approvals for Africa 2 2.3 Intended investments by type and sector 3 3 Approvals for Chinese companies investing in Africa’s mining, forestry and agriculture sectors 3 3.1 Overview 3 3.2 Mining investment approvals in Africa 4 3.3 Forestry investment approvals in Africa 4 3.4 Agricultural investment approvals in Africa 5 4 Chinese mining, forestry and agriculture investment approvals in the eco-regions 6 4.1 Overview 6 4.2 Mining investment approvals in the eco-regions 6 4.3 Forestry investment approvals in the eco-regions 6 4.4 Agricultural investment approvals in the eco-regions 7 5 Chinese companies’ merger and acquisition activities in Africa 8 6 Discussion 9 7 References 10 Annexes 1 List of Chinese companies approved to invest in African mining, forestry and agriculture 11 2 Major recent Chinese outward merger and acquisition events 23 List of tables and figures

Table 1 Sectoral distribution of Chinese mining investment approvals 5

Figures 1 Number of companies receiving approval to invest in Africa (1988–2010) 2 2 Top 10 Chinese intended investment destinations in Africa 2 3 Composition of investment approvals in Africa by economic sector (1988–2010) 3 4 Major Chinese mining investment approval destinations in Africa 4 5 Sectoral distribution of Chinese mining investment approvals 4 6 Top five destinations in Africa for intended forestry investments by Chinese companies 5 7 Sectoral distribution of Chinese forestry investment approvals 5 8 Major Chinese agriculture investment approval destinations in Africa 6 9 Sectoral distribution of Chinese agriculture investment approvals 6 10 Major Chinese mining investment destinations in the eco-regions 7 11 Sectoral distribution of Chinese mining investment approvals in the eco-region 7 12 Major Chinese forestry investment destinations in the eco-regions 7 13 Sectoral distribution of Chinese forestry investment in the eco-regions 7 14 Major Chinese agricultural investment destinations in the eco-regions 8 15 Chinese overseas merger and acquisition events (2003 to mid-2010) 8 16 Sectoral composition of Chinese overseas merger and acquisitions by number of M&A events (2003 to mid-2010) 9 Abbreviations BMZ Bundesministerium für wirtschaftliche Zusammen­arbeit und Entwicklung (Federal Ministry for Economic Cooperation and Development), Germany CIFOR Center for International Forestry Research DRC Democratic Republic of Congo GIZ Gesellschaft für Internationale Zusammenarbeit, Germany ICRAF World Agroforestry Centre M&A Mergers and acquisitions MOFCOM Ministry of Commerce, PR China MOFTEC Ministry of Foreign Trade and Economic Cooperation, PR China NPC National Planning Commission OFDI Outward Foreign Direct Investment

Acknowledgements This working paper is a product of the project ‘Chinese Trade and Investment in Africa: Assessing and Governing Trade-offs to National Economies, Local Livelihoods and Forest Ecosystems’. The project has been supported by a grant from the German Federal Ministry for Economic Cooperation and Development (BMZ) through the Gesellschaft für Internationale Zusammenarbeit (GIZ) to CIFOR, and is implemented by CIFOR, the World Agroforestry Centre and the University of Leipzig. Research for this working paper was conducted by the World Agroforestry Centre’s China and East Asia Node Beijing Office. Summary The impacts of Chinese investment in and trade with Approvals for mining investment in the 2 eco-regions Africa have become the subject of much speculation. accounted for 45% of all mining records for Africa. CIFOR’s ‘Chinese trade and investment in Africa’ The DRC, Zambia and Tanzania accounted for project seeks to understand the impacts of China’s 90% of mining sector approvals, the vast majority role in shifting global trade flows and investment (86%) of which were for mineral extraction and patterns on forests in 2 African eco-regions, the prospecting activities. Congo Basin and the southern African woodlands, with a focus on sectors with potential direct impacts In the forestry sector, there were 34 investment on forests: mining, forestry and agriculture. approvals in 14 countries. The top intended investment destinations for Chinese forestry The lack of a comprehensive database of Chinese companies in Africa are Gabon, Zambia, Ghana, investments in Africa makes it difficult to build Nigeria and Republic of Congo. Overall, Gabon a picture and analyse trends and patterns. The accounts for almost 23% of forestry sector approvals. analysis in this working paper draws on a database Eighteen of the 34 approvals were in the 2 eco- (spanning 1983 to 2010) of approvals by the regions, and over 40% of these were in Gabon. Ministry of Commerce of the People’s Republic Timber extraction and sawnwood manufacturing of China (MOFCOM) for Chinese companies together account for most (84%) of the to engage in overseas investments. Records in the approval records. database indicate the companies’ intent to invest overseas, but do not record actual investments that For crop-based agriculture, there were 35 records. were completed. Additional sources are used to Zambia, Tanzania, Sudan, Ghana and Ethiopia characterise trends in Chinese merger and acquisition accounted for almost 60% of approval records. Most activities in the sectors of concern in Africa. (74%) approvals were for crop production, with smaller numbers for wholesale and retail (20%) The database contains 1346 records of approvals for and manufacturing (5.7%) activities. Overall, 43% Chinese companies to invest in Africa from 1988 of agricultural approvals were in the 2 eco-regions, to 2010, representing 8.47% of all approvals for almost half of which were for investment in Zambia. overseas investment awarded to Chinese companies. Before 2002, fewer than 10 approvals were made per Globally, mergers and acquisitions (M&A) by year. After 2002, approvals grew at an annual average Chinese companies have been increasing in recent rate of 250%, reaching 388 in 2010. Of these, years. Africa is the second most frequent destination 278 approvals were for the mining, forestry and for mining M&A events, and research shows agriculture sectors, of which 128 (44%) were in the increased interest in M&A activity in Africa. Most 2 eco-regions of interest to the CIFOR project. M&A activity is in the oil and mining sectors.

In the mining sector, there were 209 approvals, with Further research is required to produce a 70% concentrated in 10 countries: Democratic comprehensive database of actual Chinese investment Republic of Congo (DRC), Zambia, Nigeria, Algeria, activities in Africa. M&A as a growing form of South Africa, Sudan, Tanzania, Ethiopia, Ghana overseas investment by Chinese companies also and Chad. More than half of the approvals were for merits investigation. mineral extraction and a third were for prospecting. 摘要 中国对非洲投资和贸易的影响已成为国际上备 尔及利亚，南非，苏丹，坦桑尼亚，埃塞俄比 受瞩目的焦点。在此背景下，国际林业研究中 亚，加纳和乍得10个国家，45％位于项目关 心启动了“中国在非洲的贸易和投资”项目。 注的两个生态地区。在所有矿业投资中，超过 该项目以可能对森林有直接影响的矿业、林业 50%的为矿业开发，另有超过30%为矿业勘 和农业3个部门为重点，旨在通过在非洲两个生 探。在涉及2个生态区的矿业投资记录中，刚果 态区，即刚果盆地和非洲南部森林地区开展研 （金），赞比亚和坦桑尼亚是主要的投资地， 究以了解中国对与森林有关的全球贸易流和投 占了90％，其中绝大多数（86％）为矿产开采 资模式的作用和影响。 和勘探。

由于相关数据的缺乏，使得全面了解中国在非 林业部门共有34个投资记录，涉及14个国家， 洲的投资，分析发展趋势和模式比较困难。因 主要的投资目的地为加蓬，赞比亚，加纳，尼 此，本文以中国商务部的企业海外投资审批记 日利亚和刚果（布），其中加蓬占了近23％。 录（1983年至2010年）为基础，建立了中国对 两个生态地区涉及了18个投资记录，其中40% 非洲投资数据库。该数据库记录了计划从事海 位于加蓬，而木材采伐和锯材制造业占大多数 外投资活动的企业，但并不意味着投资活动已 （84％）。 经实施。此外本文还使用了其他相关数据来源 对中国在非洲上述领域的兼并和收购趋势进行 以作物种植为基础的农业共有35条审批记录。 了说明。 赞比亚，坦桑尼亚，苏丹，加纳和埃塞俄比亚 占了近60％。其中大多数（74％）为作物生 该数据库记录了1988年至2010年间所有被批准 产，小部分为批发及零售业（20％）和制造业 在非洲进行投资的中国企业，共计1346条，占 （5.7％）的活动。总体而言，43％的农业批准 所有中国海外投资记录的8.47%。在2002年之 记录位于2个生态区，其中近一半是在赞比亚。 前，每年获得批准的企业不超过10个。而2002 此外，在全球范围内，近年来由中国公司发起 年以后，这一数字则以每年250％的速度递 的兼并和收购活动也在逐渐增加。而非洲则是 增。2010年，获得批准的投资企业达到了388 中国采掘业的第二大兼并和收购目的地。研究 个。在所有记录中，284个涉及矿业、林业和农 表明，中国在非洲进行并购活动的兴趣正在不 业的投资，129个（约44％）位于本项目的研 断增加，并主要集中在石油和矿业部门。 究区域。 今后的研究将集中在建立较为全面的中国对非 同时，矿业共涉及209个投资记录，其中70％ 洲投资数据库。同时作为一种的投资新形式， 集中在刚果（金），赞比亚，尼日利亚，阿 兼并和收购同样值得关注。 Résumé Les conséquences des investissements et des échanges et le Tchad. Plus de la moitié des autorisations ont de la Chine avec l’Afrique font l’objet de nombreuses concerné l’extraction minière, un tiers la prospection. conjectures. Le projet du CIFOR intitulé « Chinese Les autorisations d’investissement minier dans les deux trade and investment in Africa » (Le commerce et régions écologiques ont représenté 45 % de tous les les investissements chinois en Afrique) cherche à dossiers miniers pour l’Afrique. La RDC, la Zambie et comprendre quel est le rôle de la Chine dans le fait la Tanzanie ont représenté 90 % des autorisations dans que les flux d’échange mondiaux et les politiques le secteur minier, dont une grande majorité (86 %) d’investissement se déplacent vers les forêts dans pour des activités d’extraction et de prospection. deux régions écologiques de l’Afrique, à savoir le bassin du Congo et les forêts d’Afrique australe, en Dans le secteur forestier, 34 autorisations mettant l’accent sur les secteurs ayant un potentiel d’investissement ont été accordées dans 14 pays. Les impact direct sur les forêts : l’exploitation minière, la premières destinations d’investissement visées par les foresterie et l’agriculture. sociétés forestières chinoises en Afrique sont le Gabon, la Zambie, le Ghana, le Nigeria et la République du Dans la mesure où il n’existe pas de base de données Congo. Dans l’ensemble, le Gabon représente presque complète sur les investissements chinois réalisés 23 % des autorisations dans le secteur forestier. en Afrique, il est difficile de brosser un tableau Dix-huit des 34 autorisations ont concerné les deux et d’analyser les tendances et les caractéristiques. régions écologiques et plus de 40 % de celles-ci ont Dans ce document de travail, l’analyse repose sur été attribuées au Gabon. L’extraction de bois et la l’enregistrement, dans une base de données (1983- fabrication de bois scié représentent à elles deux la 2010), des autorisations accordées par le Ministère majorité des autorisations enregistrées (84 %). du commerce de la République populaire de Chine (MOFCOM) aux sociétés chinoises pour qu’elles Dans le secteur de l’agriculture basée sur les cultures, investissent à l’étranger. Cette base de données on dénombre 35 enregistrements. La Zambie, enregistre les intentions d’investir à l’étranger des la Tanzanie, le Soudan, le Ghana et l’Éthiopie sociétés, mais pas les investissements réellement ont représenté presque 60 % des autorisations réalisés. D’autres sources sont utilisées pour enregistrées. La plupart d’entre elles (74 %) ont caractériser les tendances en matière de fusions- concerné la production de cultures, beaucoup acquisitions chinoises dans les secteurs considérés en moins les activités de gros et de détail (20 %) et les Afrique. activités manufacturières (5,7 %). Au total, 43 % des autorisations agricoles ont été accordées dans les deux La base de données contient 1 346 enregistrements régions écologiques, dont presque la moitié pour des d’autorisations à investir en Afrique délivrées investissements en Zambie. aux sociétés chinoises entre 1988 et 2010, ce qui représente 8,47 % de l’ensemble des autorisations À l’échelle mondiale, le nombre de fusions-acquisitions d’investissement à l’étranger accordées aux entreprises (M&A) réalisées par des sociétés chinoises augmente chinoises. Avant 2002, moins de 10 autorisations ces dernières années. L’Afrique est la deuxième étaient délivrées chaque année. À partir de 2002, destination la plus fréquente en matière de fusions- ce nombre a augmenté d’en moyenne 250 % par acquisitions minières, et des études font état d’un an, pour atteindre 388 autorisations en 2010. Sur intérêt accru dans l’activité de M&A en Afrique. ce nombre, 278 ont concerné les secteurs minier, La plus grande partie de celle-ci se produit dans les forestier et agricole, dont 128 (44 %) dans les deux secteurs pétrolier et minier. régions d’intérêt écologique pour le projet du CIFOR. D’autres études sont nécessaires pour établir une base Dans le secteur minier, 209 autorisations ont été de données complète sur les investissements chinois accordées, 70 % d’entre elles étant concentrées dans réellement réalisés en Afrique. Les fusions-acquisitions, 10 pays : la République démocratique du Congo en tant que moyen de plus en plus utilisé par les (RDC), la Zambie, le Nigeria, l’Algérie, l’Afrique sociétés chinoises pour investir à l’étranger, méritent du Sud, le Soudan, la Tanzanie, l’Éthiopie, le Ghana également d’être étudiées. 1. Introduction investment events in the Congo Basin and southern African woodlands. The ‘Chinese trade and investment in Africa: Assessing and governing trade-offs to national In the absence of a complete database, the analysis economies, local livelihoods and forest ecosystems’ in this working paper draws on a database of project, launched in March 2010, aims to advance applications by Chinese companies for permission to understanding of the social, economic and invest overseas. The database is the China Companies environmental impacts of Chinese investment Overseas Investment Database of the Ministry in commodities or sectors affecting forests of Commerce of the People’s Republic of China and livelihoods in Africa (e.g. timber, mining, (MOFCOM). The MOFCOM database contains agriculture), and to strengthen the capacity of a list of Chinese companies that received approval decision-makers in government, civil society and the to make overseas green land investments during private sector to enact reforms to maximise social and the period 1983–2010. The database was built to economic benefits while minimising adverse effects. comply with Chinese government regulations, first issued in 1983 and subsequently updated several This project seeks to understand China’s role in times, that require Chinese companies intending shifting global trade flows and investment patterns; to make non-trade investments overseas to apply to to understand what is unique about Africa’s trade MOFCOM for approval to invest (State Council with China (relative to other development partners) 1983, MOFTEC 1984, 1985, 1992, 1999, NPC in the forestry sector; and to identify how trends 1991, MOFCOM, 2003, 2007, 2009). Listing in in forest-related trade and investment are playing the database can only be taken as an indication of a out in the Congo Basin and the southern African company’s intent to invest overseas. Listing does not woodlands. These regions were selected because imply that all these companies eventually made the of the importance of their forests. The countries actual investments either in Africa or in the sectors of concern in these eco-regions are Republic of under which they applied. There are 2 other caveats Congo, Cameroon, Democratic Republic of Congo to note. First, the database does not include merger (DRC), Equatorial Guinea, Gabon, Mozambique, and acquisition (M&A) or other minority equity Tanzania, Zambia and Zimbabwe. Together these investments. Since the database does not include 2 countries have a total area of 6.3 million km , companies solely involved in M&A investment, this spanning more than a fifth of the total African land working paper describes some trends in Chinese mass. The project is identifying the economic, social M&A (see Section 5). Second, the database does and environmental trade-offs (positive and negative not record the value of intended investments. impacts) for a selection of Chinese investments that The relevant Chinese government agencies record have an impact on forests on the continent (e.g. outward foreign direct investment (OFDI) value data timber, agricultural cash crops, biofuels, mining). separately and report them using other systems.

In recent years, in line with China’s ‘Going Out’ Drawing primarily on the MOFCOM database, strategy announced in 2000 (MOFCOM 2001), this working paper examines trends in intended many Chinese companies have begun exploring and investment and the major intended investment making investments in Africa. The impacts of this destinations of Chinese companies in 3 important trend – both positive and negative – have generated land use sectors that may have direct environmental a great deal of speculation worldwide. A growing and social impacts: forestry, mining and agriculture. number of reports from academics and civil society The analysis focuses on data for companies organisations document some of these activities intending to invest in these sectors in countries of and, in some cases, the specific impacts on the the Congo Basin and southern African woodlands local ecology, livelihoods and economy. However, (Congo, Cameroon, DRC, Equatorial Guinea, nowhere have specific investment events been Gabon, Mozambique, Tanzania, Zambia and systematically collated, making it difficult to build Zimbabwe). Section 5 analyses available data on a picture and analyse trends and patterns from the M&A investments in these sectors drawing on other available scattered documentation. One part of this data sources. The final section elaborates on some project is to develop systematic documentation of questions for further research raised by the analysis. 2 Huang Wenbin and Andreas Wilkes

2. Approvals for investment 2.2 Investment destinations of by Chinese companies in approvals for Africa Africa The 1346 investment records found referred to 45 African countries, or around 85% of the 2.1 Trends in investment approvals continent. The top 10 intended investment destinations for Chinese companies are Nigeria, Examination of the MOFCOM database identified South Africa, Zambia, Egypt, Ethiopia, Angola, 1346 records of Chinese companies declaring their Tanzania, DRC, Algeria and Ghana. Records intention to invest in Africa, covering the period from 1988 to 2010. This accounts for 8.47% of the total number (15 895) of records in the MOFCOM Nigeria database. Although the first record in the database 12.6% dates back to 1983, the first investment record South Africa Other 8.1% in Africa is in 1988, when Jiangxi International 38.2% Economy and Technology Cooperation Corporation, Zambia a state-owned company, applied to set up a 6.2% representative office in Zambia. Egypt 5.9% To help understand trends in investment approvals, Ethiopia 5.6% the period 1988–2010 can be divided into 2 phases. Ghana 4.5% Angola 4.8% The first phase is from 1988 to 2001, during which Algeria time fewer than 10 companies obtained approval 4.6% Tanzania from MOFCOM each year. The second phase is DR Congo 4.8% 4.7% from 2002 to 2010, during which time the record of investment applications grew dramatically, with Figure 2. Top 10 Chinese intended investment an average annual growth rate of 250%. In 2010, destinations in Africa there were 388 records of approvals, which is nearly Source: MOFCOM China Overseas Investment Database, 40 times as many as in 2002. compiled by the authors

450 400 350 300 250 200 150 100 50 0

1988 1992 1993 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Figure 1. Number of companies receiving approval to invest in Africa (1988–2010) Source: MOFCOM China Overseas Investment Database. Compiled by the authors Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 3

referring to these 10 countries account for 61.8% of Farming, forestry, animal the total number of companies approved to invest husdandry and €sheries 4.2% Real estate in Africa. 3.9% Research, technical services Other and geological 1.4% 2.3 Intended investments by type prospecting and sector 6.5% Manufacturing 27.6% To analyse the intended investments by sector, we Mining adopted the classification in the Chinese National 9.3% Economy Industry Classification and Code (GB/T 4754–2002), a national standard applied in China. Application of this classification method reveals Building industry 12.0% that Chinese companies mainly intend to invest in 8 economic sectors: manufacturing; leasing and Lease and Wholesale and retail business services business services; wholesale and retail; construction; 14.0% 21.2% mining; research, technical services and geological prospecting; farming, forestry, animal husbandry and Figure 3. Composition of investment approvals in fisheries; and real estate 1 (Figure 3). Africa by economic sector (1988–2010) Note: To better understand the composition of investments Amongst these sectors, manufacturing is the most from China in Africa, the analysis in this figure draws on the first frequent investment target, accounting for around level of ‘Classification and Code’. 27.6% of all approvals. This industry category covers Source: MOFCOM China Overseas Investment Database, manufacturing across all industries, including textiles, compiled by the authors chemicals, mining, wood processing and food processing. The leasing and business services sector is the second largest intended investment sector for prospecting. The classification that includes Chinese companies, accounting for more than 21% agriculture, animal husbandry, fisheries and forestry of the total number of records. This sector includes in one category can be considered ‘agriculture’ in its a large number of representative offices intending broadest sense. This sector accounts for just over 4% to make investments or to expand marketing of of the total number of records. their products, many of which have the purpose of searching for potential business opportunities and clients in Africa. Companies engaging in 3. Approvals for Chinese international trade are categorised as being in the wholesale and retail industry, which accounts companies investing in for almost 14% of all investment records. The Africa’s mining, forestry and construction industry, which includes construction agriculture sectors activities such as housing, roads, railways and bridges, accounts for just over 12% of records. The 3.1 Overview mining sector is also an important investment field for Chinese companies, accounting for over 9% As mentioned above, many mining, forestry and of records. It should be noted, however, that in agriculture companies’ approvals to invest in this method of classification, mining only includes Africa are classified under other economic sectors, mineral extraction activities, such as extraction of oil, such as manufacturing, wholesale and retail, and natural gas, metal and non-metal ores. Other mining- geological prospecting. In this section, we separate related activities are classified into other sectors, mining, forestry and agriculture out of the general such as research, technical services and geological ‘agriculture’ category, and include records relating to these 3 sectors that are allocated to other sectors using the standard classification presented above. In the mining sector, records referring to metal 1 The China National Economy Industry Classification and Code (GB/T 4754–2002) is a 3-tier hierarchical list, with more and non-metal ores (e.g. quarries) are sometimes detailed items under each main level. difficult to distinguish, and some non-metal mining 4 Huang Wenbin and Andreas Wilkes

Geological prospecting is also an important intended DR Congo 18.2% activity, accounting for around 31% of records. Some of these records refer to companies that provide Other mineral prospecting services to other enterprises, 39.7% while others are for companies intending ultimately Zambia to extract the ores discovered through prospecting. 14.8% Manufacturing and leasing and business services each account for around 6% of total mining records, and Nigeria the wholesale and retail industry accounts for just Tanzania 7.7% Algeria under 2% of records (Figure 5). 4.8% 5.3% Sudan South Africa The mining industry also includes 14 oil companies, 4.8% 4.8% of which 12 obtained approvals to engage in oil Figure 4. Major Chinese mining investment approval extraction and 2 in manufacturing (Table 1). destinations in Africa Source: MOFCOM China Overseas Investment Database, compiled by the authors 3.3 Forestry investment approvals in Africa Thirty-four forestry investment records distributed investment approvals may be included in the across 14 African countries cover forest management, mining sector. logging, wood processing, paper and furniture and wooden floor materials manufacturing. This re-categorisation results in 278 records relating to the mining, forestry and agriculture sectors, Country distribution accounting for more than one-fifth of the total The top investment destinations for Chinese investment application records. There are 209, 34 forestry companies in Africa are Gabon, Zambia, and 35 records in the mining, forestry and agriculture Ghana, Nigeria and Republic of Congo, among sectors, respectively, or around 15%, 2.6% and 2.6% which Gabon is the most important, accounting of all investment application records. for almost 40% of the total records. Gabon is an important African timber provider to China; it’s 3.2 Mining investment approvals rich forest resources and a comparatively stable in Africa political environment, have attracted Chinese

Country distribution Whole sale The re-categorised database shows a total of 209 and retail Manufacturing 1.9% records in the mining sector, distributed across 33 5.7% Other African countries. The top 10 intended investment Lease and 0.5% destinations of these companies are DR Congo, business services 6.2% Zambia, Nigeria, Algeria, South Africa, Sudan, Tanzania, Ethiopia, Ghana and Chad. Records referring to these 10 countries account for just under 70% of all mining sector records. Research, Mineral technical services Sector distribution extraction and geological 55.0% prospecting Mining-related records are mainly distributed across 30.6% five sectors of the standard classification: mineral extraction, geological prospecting, manufacturing, Figure 5. Sectoral distribution of Chinese mining leasing and business services and wholesale and retail. investment approvals Mineral extraction is the most common of these, Source: MOFCOM China Overseas Investment Database, accounting for 55% of all mining-related records. compiled by the authors Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 5

Table 1. Sectoral distribution of Chinese mining investment approvals Investment No. of which are oil Sector records investment records Mineral extraction 115 12 Research, technical services and geological 64 0 prospecting Leasing and business services 13 0 Manufacturing 12 2 Wholesale and retail 4 0 Other 1 0 Total 209 14 Source: MOFCOM China Overseas Investment Database, compiled by the authors

Furniture Gabon manufacturing 22.9% 11.4%

Other Paper and 40.0% paper products Forest 20.0% resources Ghana extraction 11.4% 45.7%

Zambia Congo (Brazzaville) 8.6% Nigeria Timber processing 8.6% 8.6% 22.9%

Figure 6. Top five destinations in Africa for intended Figure 7. Sectoral distribution of Chinese forestry forestry investments by Chinese companies investment approvals Source: MOFCOM China Overseas Investment Database, Source: MOFCOM China Overseas Investment Database, compiled by the authors compiled by the authors

forestry companies (Forest Trends 2007). Exports of activities as ‘secondary processing’, 18 records roundwood from Gabon to China have accounted (52.9%) fall into the primary processing sector and for around 40% of African roundwood exports to 16 (47.1%) into the secondary processing sector. China in recent years.

Sectoral distribution 3.4 Agricultural investment approvals in Africa Within the forestry sector, about 45.7% of investment approvals were for forest resources In this section, we consider agriculture only narrowly extraction (forest management and logging). Other defined as cropping, i.e. excluding forestry, animal activities included processing of wood products husbandry and fisheries. Applying this narrow (wood-based panelling, etc.), paper and paper definition, 35 records are found in this sector. products and furniture manufacturing, which account for around 22.9%, 20.0% and 11.4%, Country distribution respectively (Figure 7). The 35 investment records are distributed across 17 African countries. Zambia, Sudan, Tanzania, When logging and sawnwood processing are Ethiopia and Ghana are the major investment categorised as ‘primary processing’ and other destinations, accounting for almost 60% of the total 6 Huang Wenbin and Andreas Wilkes

investment approval records. Amongst these five 4.2 Mining investment approvals in countries, Zambia is the most frequently represented, the eco-regions accounting for almost 20% of the total number of records. Country distribution Sectoral distribution A total of 95 records for the mining sector in these countries account for over 45% of the total Most approvals in the agriculture sector are in crop mining records for the African continent. The production. The other sectors recorded are wholesale major destinations for mining investment are and retail and manufacturing, accounting for 20.0% DR Congo, Zambia and Tanzania. These three and 5.7%, respectively (Figure 9). countries combined account for over 90% of mining 4. Chinese mining, forestry investment records in the eco-regions (Figure 10). and agriculture investment Sectoral distribution approvals in the eco-regions When records are analysed by economic sector, mineral extraction is seen to account for a large 4.1 Overview share (64%). Extraction and geological prospecting together account for 86% of the total mining sector This research project focuses on the Congo Basin investment records. No oil-related records were and southern African woodlands because of found in the target eco-regions. the importance of their remaining forests. The countries of concern in these two eco-regions are Cameroon, DR Congo, Equatorial Guinea, Gabon, 4.3 Forestry investment approvals in Mozambique, Republic of Congo, Tanzania, Zambia the eco-regions and Zimbabwe. Together, these countries cover 6.3 million km2, more than one-fifth of the total Country distribution African land area. There are a total of 18 investment approval records for the forestry sector in the Congo Basin and The MOFCOM database includes 293 investment southern woodlands eco-regions, accounting for records in these countries, which, at less than 22%, is almost 53% of the total forestry records in Africa. not a very large share of the total records for Africa. Gabon is the most frequent intended investment However, of these, 44% (128 records) relate to destination, accounting for more than 40% of the mining, forestry and agriculture. This indicates that total investment records in the eco-regions. these sectors in these investment destinations are relatively significant for Chinese companies.

Zambia 20.0% Manufacturing 20% Other 40.0% Sudan Wholesale and retail 11.4% 5.7%

Tanzania 11.4% Agriculture Ghana (crops) 8.6% Ethiopia 8.6% 74.3%

Figure 8. Major Chinese agriculture investment Figure 9. Sectoral distribution of Chinese agriculture approval destinations in Africa investment approvals Source: MOFCOM China Overseas Investment Database, Source: MOFCOM China Overseas Investment Database, compiled by the authors compiled by the authors Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 7

Lease and Gabon business services 4.2% 2.1% Equatorial Guinea Cameroon Wholesale and retail 4.2% 3.2% 2.1% Other 1.1% Congo (Brazzaville) Manufacture 5.3% 8.4%

Tanzania DR Congo 10.5% 40.0% Research, technical services and geological prospecting 22.1% Mineral Zambia extaction 32.6% 64.2%

Figure 10. Major Chinese mining investment Figure 11. Sectoral distribution of Chinese mining destinations in the eco-regions investment approvals in the eco-region Source: MOFCOM China Overseas Investment Database, Source: MOFCOM China Overseas Investment Database, compiled by the authors compiled by the authors

Cameroon Tanzania 5.6% Furniture 5.6% Paper and manufacturing paper products 5.6% Equatorial Guinea manufacturing 11.1% 11.1% Gabon 44.4% Timber Congo (Brazzaville) processing 16.7% 16.7% Forest resources extraction Zambia 66.6% 16.7%

Figure 12. Major Chinese forestry investment Figure 13. Sectoral distribution of Chinese forestry destinations in the eco-regions investment in the eco-regions Source: MOFCOM China Overseas Investment Database, Source: MOFCOM China Overseas Investment Database, compiled by the authors compiled by the authors

Sectoral distribution 42% of the total agricultural records for Africa. This When we look at the sectoral distribution of Chinese indicates that these regions are important Chinese forestry investment in the study countries, we find agricultural investment destinations. that primary processing (i.e. timber extraction and sawnwood manufacturing) accounts for most (84%) Amongst the countries in the two eco-regions, of the records (Figure 13). Zambia is the most frequent intended investment destination, accounting for nearly half of all records. The potential for investment in Zambia makes southern Africa an important agricultural investment 4.4 Agricultural investment approvals destination; together with Tanzania this sub-region in the eco-regions accounted for over 73% of all investments in the two For agriculture, the MOFCOM database includes eco-regions. 15 records in the eco-regions, accounting for over 8 Huang Wenbin and Andreas Wilkes

Of these, 13 records (87%) are for intended Amongst Chinese mining companies’ M&A investment in crop production, and two records are target markets, Australasia is the most important for manufacturing. destination, accounting for a quarter of total M&A events. Africa is the second most important continent, accounting for 15% of the total records. 5. Chinese companies’ merger It should be noted that some Australasian and other companies may have been taken over or purchased by and acquisition activities in Chinese companies that are also operating in Africa. Africa Deloitte (2010b) presents an analysis of possible In addition to the green land investments recorded future trends in Chinese outward M&A activity in the MOFCOM database, Chinese companies have in the mining sector. Using data from interviews been engaged in a large number of overseas M&A with 26 Chinese mining companies with prior activities in recent years, many of which are in Africa. involvement in outward M&A, Deloitte identified M&A approvals are not included in the MOFCOM database. For insights into trends in this area, we rely on two reports compiled by Deloitte (2010a, Gabon 2010b). Deloitte’s reports include only completed Equatorial Guinea 6.7% M&A activity, and do not account for the likely large 6.7% DR Congo number of M&A initiatives that are not followed 6.7% through to completion. Cameroon Zambia 6.7% 46.7% From 2003 to mid-2010, Chinese overseas M&A activity increased greatly in terms of both value and number (Figure 15). Tanzania 26.7% Amongst these mergers and acquisitions, a large number (in terms of both quantity and value) Figure 14. Major Chinese agricultural investment were in the oil and mining sectors. These M&A destinations in the eco-regions activities account for 39% of the total records Source: MOFCOM China Overseas Investment Database, Deloitte collated. compiled by the authors

40 25 000

35 20 000 30 V alue million USD 25 y 15 000 20

Quantit 15 10 000

10 5 000 5

0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2003 2004 2005 2006 2007 2008 2009 2010

Quantity Value million USD

Figure 15. Chinese overseas merger and acquisition events (2003 to mid-2010) Source: Deloitte (2010a) Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 9

33 Chinese outward M&A events in the mining Medical and biotechnology Business sector in 2009, representing US$9.2 billion of 3% 2% Agriculture investment. Most of the M&A events involved Other 3% the purchase of majority or minority stakes in the 1% Leisure goods overseas company. Most interviewed respondents 4% revealed that they expected Chinese outward Financial services 7% Energy, M&A activity to increase in 2010–2011. The most mining and commonly cited driver of this anticipated trend was Consumer goods public services 7% 39% the goal of securing resources supply. Increasing market share, achieving economies of scale and price bargaining power were also frequently mentioned Telecommunications, drivers. Environmental protection concerns were the media and technology 14% third most commonly mentioned obstacle to M&A Manufacture and deals, after currency regulations and financial market chemical industry instability. Africa was by far the most frequently 20% cited potential future destination for outward M&A. Figure 16. Sectoral composition of Chinese overseas Reasons given for this include the complementarity merger and acquisitions by number of M&A events between Africa’s abundant resources and Chinese (2003 to mid-2010) companies’ ability to invest, low labour costs and Source: Deloitte (2010a) the then (pre-July 2010) threatened imposition of a super-profits tax in Australia that made acquisitions in other countries relatively more attractive. Drivers explaining Chinese companies’ need to secure raw a reasonable share of overseas M&A activities by materials supply in the mining sector are reviewed in Chinese companies, being the second most frequent Zhang (2011). investment destination. By sector, energy, oil and mining are important target industries for Chinese companies’ M&A activities.

6. Discussion The analysis in this working paper draws mostly The analysis of records of Chinese government on a database recording approvals by MOFCOM approvals for participation in overseas investment by for Chinese companies to invest overseas. The Chinese companies shows 1346 investment records database does not record which of these companies of intent to invest in Africa. This is equivalent to subsequently went on to make the actual less than 8.5% of the total number of approvals for investments. Furthermore, since the database records Chinese companies to invest overseas. Amongst the only companies’ intentions to invest overseas, it is specific sectors of concern to this research project, possible that some companies with approval to invest mining investment in Africa is an important field for overseas subsequently changed the country or sector Chinese companies investing in Africa, accounting of investment based on their original scoping and for 15% of the total number of investment records. planning activities. The database cannot therefore DR Congo, Zambia, Nigeria, Algeria and South be taken to indicate actual investments by Chinese Africa are important mining investment destinations, companies. This can be illustrated with reference accounting for nearly half of all investment approval to the forestry sector. The MOFCOM database records. The shares of forestry and agriculture are records 18 companies intending to invest in the much smaller (about 2.6% each). The central and forestry sector in the central and southern African southern African eco-region countries are important eco-regions. Using the list of companies obtained mining, forestry and agriculture investment from the MOFCOM database and cross-referencing destinations for Chinese companies – a large part of against the list of companies recorded by China all investment records for these three sectors across Customs as importing roundwood from Africa to the African continent are concentrated in countries China in 2008 and 2009 to search for online and in these two eco-regions. Africa also accounts for media reports of investment events, 10 companies 10 Huang Wenbin and Andreas Wilkes

reported or claimed in their own media products to Ministry of Foreign Trade and Economic Cooperation have made investments in forest management, and of PR China (MOFTEC) 1992. Approval and four companies reported that they made investments temporary management regulation for setting up in wood product processing in Africa (Huang et al. non-trade overseas companies. 2011). However, in-country investigations (e.g. Ministry of Commerce of the PR China (MOFCOM) Putzel and Kabuyaya 2011) sometimes find that 2003 Circular about implementing well the some claimed investments are in fact not operational, approval reform pilots for overseas investments as occurs when concessions are subsequently [Shanghezi (2003) No. 16]. withdrawn or when other factors impede investment Ministry of Commerce of the PR China (MOFCOM) activities. Further research would be required to 2007 Circular on adjusting the authorization of identify which companies have gone on to undertake overseas investments [Shanghezi (2007) No. 112]. actual investments. Investigation of the reasons Ministry of Commerce of the PR China (MOFCOM) for success or failure in following through with 2009 Management method for overseas investment intentions would increase understanding investments [Shangwubuling (2009) No. 5]. of the factors affecting investment decisions by Chinese firms. Ministry of Foreign Trade and Economic Cooperation (MOFTEC) 1984 Circular about the approving authority and procedure of establishing the non- Industry actors forecast that Chinese M&A activities trade joint venture overseas. in Africa will increase in the short term. Another issue arising from the increased M&A activity is Ministry of Foreign Trade and Economic Cooperation whether international but Chinese-owned or partly (MOFTEC) 1985. Approval procedure and owned companies are also active in the target sectors administrative method for setting up non-trade in Africa. management joint ventures overseas (temporary) [Waijingmaohefa (1985) No. 19]. National Planning Commission (NPC) 1991 7. References Regulation on developing and approving project proposals and feasibility reports for overseas Deloitte 2010a Rising sun: a new chapter in China’s investments. [Jiwaizi (1991) No. 1271]. overseas merger and acquisitions. Deloitte, Putzel, L. and Kabuyaya, N. 2011 Forest-related Beijing, China (in Chinese). impacts of Chinese aid, trade and investment in Deloitte 2010b Mining for growth: a review of the Democratic Republic of Congo: preliminary outbound mining M&A activity from China. observations. Unpublished report, CIFOR, Deloitte, Beijing, China. Bogor, Indonesia. Forest Trends 2007 Forest products trade between State Council 1983 Circular on assignment of China and Africa: an analysis of import and responsibility in foreign economy and trade. export statistics. Forest Trends, Washington, DC. [Guofa (1982) No. 13]. Huang, W.B., Canby, K. and Sun, X.F. 2011 Zhang, H. 2011. Trends in Chinese trade and China forest products trade and investment. investment in Africa’s mining sector. Unpublished Unpublished report submitted by World report submitted by World Agroforestry Centre Agroforestry Centre China & East Asia Node to China & East Asia Node to CIFOR, Bogor, CIFOR, Bogor, Indonesia. Indonesia. Ministry of Commerce of the PR China (MOFCOM) 2001 China commerce yearbook 2001. MOFCOM, Beijing, China. Annex 1. List of Chinese companies approved to invest in African mining, forestry and agriculture

Note: Transliteration and translation of company names was done by the authors. Source: MOFCOM Overseas Investment Database

Table 1. Chinese companies approved to invest in African mining Country/region Parent company (China) Company name Business Approval date Tanzania Anhui Geoscientific Investment Co. Ltd Fucheng Mining Co. Ltd Mining exploration, production 10 December 2010 and processing Algeria Anhui Shuangcheng Electric Wire and Electric Cable Uncertain Mining exploration and trade 7 September 2009 Co. Ltd South Africa Baosteel Resources Co. Ltd Baosteel Resources South Africa Co. Mining exploration and trade 26 March 2010 Ltd Zambia Beijing Huayihuisheng Trade Co. Ltd Huayi Zambia Co. Ltd Mining exploration and extraction 22 June 2007 DR Congo Beijing Huayihuisheng Trade Co. Ltd Uncertain Mining exploration, production 25 December 2009 and processing Zambia Beijing Yongtongchang Mining Co. Ltd Zambia Yongtongchang Mining Co. Mining exploration and extraction 28 September 2009 Ltd Sudan Beijing Yongxinghongsheng Co. Ltd Huatuo Mining Co. Ltd Mining exploration and extraction 29 July 2009 Nigeria Beijing Yuhongxing Co. Ltd Zhongni Gold Stat Mining Co. Ltd Mining exploration and extraction 5 December 2008 Nigeria Changzhou Pangu Economy and Technology Changzhou Pangu Nigeria Co. Ltd Mining exploration and trade 28 February 2006 Development Co. Ltd DR Congo Chenzhou Jinshan Metallurgy Chemical Co. Ltd Jinshan Africa Mining Co. Ltd Mining exploration 3 June 2010 Tanzania Diying Tian Mining Development Co. Ltd Diying Mining Co. Ltd Mining exploration, production 23 November 2010 and processing Nigeria Dongguan Zhongzhan Mining Co. Ltd Kenyang Industry Mining exploration, production 17 November 2009 and processing Madagascar Foshan Ruima Mining Investment Hi Dam Resources Mining investment 12 June 2010 DR Congo Fujian Benyuan Metal Material Co. Ltd Benyuan DRC Co. Ltd Mining exploration and trade 27 January 2008 Botswana Fujian Zhongyu Investment Development Co. Ltd Botswana Zhongyu Mining Mining exploration and trade 15 December 2009 Development Co. Ltd DR Congo Fuyang Shenneng Uncertain Mining exploration, production 27 June 2008 and processing

continued on next page 12 Huang Wenbin and Andreas Wilkes continued on next continued page 10 May 2010 10 May 27 September 2008 15 January 2009 17 August 2007 17 August 9 December 2010 9 December 9 August 2007 9 August 27 October 2006 2 August 2010 2 August 15 October 2008 8 January 2008 24 January 2008 21 June 2010 6 September 2010 23 June 2008 11 June 2010 29 June 2010 27 March 2007 27 March 1 September 2010 17 December 2007 17 December 11 February 2010 11 February Approval date Approval Mining and trade exploration Mining exploration Mining production exploration, and processing Mining exploration Mining exploration Mining exploration Mining exploration Mining exploration Mining exploration Mining production exploration, and processing Mining and trade exploration Mining and trade exploration Mining production exploration, and processing Processing Mining exploration Mining production exploration, and processing Mining production exploration, and processing Mining and trade exploration Mining and trade exploration Mining exploration Business Sarl Shaolin Mines Uncertain Uncertain Sushan Geological Engineer Co. Ltd Co. Engineer Sushan Geological Sushan Geological Engineer Tanzania Tanzania Engineer Sushan Geological Co. Ltd Henan Asia–Africa Geology Engineer Geology Engineer Henan Asia–Africa Ltd Co. Tanzania Henan Asia–Africa Geology Engineer Geology Engineer Henan Asia–Africa Ltd Namibia Co. Henan International Mining Co. Ltd Henan International Mining Co. Rebecca DRC Mining Co. Ltd DRCRebecca Mining Co. Uncertain Jinjucheng Mining Co. Ltd Jinjucheng Mining Co. Uncertain Wuhan Global Mining NigeriaWuhan Company DRC Chenfei Mining Co. Ltd MiningDRC Co. Chenfei Hainan Mining Madagascar Co. Ltd Hainan Mining Madagascar Co. Kingrui Mining Investment Co. Ltd Co. Kingrui Mining Investment C&K Guishan Tanzania Mining Co. Ltd Mining Co. Tanzania Guishan JMT Mining Co. Ltd MiningJMT Co. Yuedi Zambia Mining Co. Ltd Zambia Mining Co. Yuedi Company name Company Henan Bureau of Geo-explorationHenan Bureau and Mineral Development Henan Hydrogeology Geology Exploration Institute Geology Exploration Henan Hydrogeology Henan Hydrogeology Geology Exploration Institute Geology Exploration Henan Hydrogeology Henan Coal Field Geology Institute Field Henan Coal Henan Coal Field Geology Institute Field Henan Coal Henan Bureau of Geo-explorationHenan Bureau and Mineral Development Henan Bureau of Geo-explorationHenan Bureau and Mineral Development Henan Geology and Mapping General Institute Henan Rebecca Holding Co. Ltd Holding Co. Henan Rebecca Henan Rebecca Holding Co. Ltd Holding Co. Henan Rebecca Henan Qianli Machinery Co. Ltd Henan Qianli Machinery Co. Hebei Jidong Construction Wuhan Industrial Co. Ltd Industrial Co. Wuhan Haining Droin Imp & Exp. Co. Ltd Co. Imp Haining Droin & Exp. Hainan Non-ferrous Mining Development Co. Ltd Mining Co. Development Hainan Non-ferrous Han International Resources Group Han International Resources Harbin Long Engineer Co. Ltd Co. Engineer Harbin Long Guizhou Geo-mineral Resource Development Co. Co. Guizhou Geo-mineral Development Resource Ltd Guangzhou Longyuan Metal Co. Ltd Metal Co. Guangzhou Longyuan Guangdong Chemical Industry Geology Exploration Institute Parent company (China) company Parent Algeria Sudan Algeria Nigeria Tanzania Tanzania Namibia Tanzania DR Congo DR Congo DR Congo Zambia Nigeria DR Congo Madagascar DR Congo Cameroon Tanzania DR Congo Zambia Country/region Table 1. continued Table Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 13 continued on next continued page 25 August 2009 25 August 19 August 2009 19 August 24 September 2009 22 February 2010 22 February 4 December 2008 4 December 9 August 2010 9 August 3 June 2010 7 June 2010 17 September 2010 23 December 2009 23 December 15 September 2009 9 February 2010 9 February 23 August 2010 23 August 23 August 2010 23 August 22 February 2008 22 February 10 May 2010 10 May 19 December 2008 19 December 23 January 2009 11 June 2008 2 August 2010 2 August Approval date Approval Mining and trade exploration Mining production, exploration, and trade processing Mining and trade exploration Mining exploration Processing Mining production exploration, and processing Mining exploration Mining production exploration, and processing Mining and trade exploration Processing Mining and trade exploration Mining and processing exploration Mining and trade exploration Processing Mining exploration Mining exploration Mining and trade exploration Mining exploration Mining exploration Extraction Business Namibia China East Mineral Ltd Co. Investment Exploration Namibia China East Mineral Ltd Co. Exploration KEPXING NIG LTD KEPXING Jilin Nonferrous Zambia Mining Co. Ltd Zambia Mining Co. Jilin Nonferrous ZERO-BITS CC Tianxiong Mining Investment Co. Ltd Co. Mining Tianxiong Investment Xinxiang Ruixiang Congo Mining Co. MiningXinxiang Ruixiang Congo Co. Ltd Zhong Xiang Zambia Mining Co. Ltd Zhong Xiang Zambia Mining Co. Shanshan Congo Co. Ltd Co. Shanshan Congo Ruixiang MiningSouth Resources Ltd Co. Africa DRC Kaixin Smelt Co. Ltd DRC Kaixin Smelt Co. Ghana JUSSK Geo-mineral Resource Co. Ltd Ruixiang DRC Co. Ltd Ruixiang DRC Co. Uncertain Zhonge Mining Investment Co. Ltd Co. Zhonge Mining Investment Longjiang Non-ferrous Zambia Mining Non-ferrous Longjiang Co. Ltd Uncertain Zhonglian Mining Co. Ltd Zhonglian Mining Co. Henan Geologi av Asia-afrikanske av Henan Geologi teknisk samarbeid med International Ltd Henan Zhengzhou Geology & Mineral Institute Office Ethiopia Exploration Company name Company East China Mineral Exploration and Development and Development East China Mineral Exploration Bureau East China Mineral Exploration and Development and Development East China Mineral Exploration Bureau Jiangsu Pan Pacific Development Co. Ltd Co. Development Pacific Jiangsu Pan Jilin Nonferrous Metal Geological Exploration Metal Exploration Geological Jilin Nonferrous Bureau Hunan Zexin Imp & Exp Co. Ltd Imp & Exp Co. Hunan Zexin Hunan Tianxiong Hunan Tianxiong Industry Liaoning Nonferrous Geological Exploration Institute Exploration Geological Liaoning Nonferrous Hunan Geological & Mining Organization for Non- & Miningfor Hunan Geological Organization Metals Ferrous Hunan Shanshan New Material Co. Ltd Hunan Shanshan New Material Co. Hunan Ruixiang New Material Co. Ltd Hunan Ruixiang New Material Co. Hunan Kaitong Metal Co. Ltd Hunan Kaitong Metal Co. JUSSK Hunan Jiahe Mining Investment Co. Ltd Co. Hunan Jiahe Mining Investment Hunan Jiahe Mining Investment Co. Ltd Co. Hunan Jiahe Mining Investment Hubei Geo-mineral Exploration Co. Ltd Hubei Geo-mineral Co. Exploration Hegang City DiMei Co. Ltd Hegang City DiMei Co. Henan Zhonglian Mining Co. Ltd Henan Zhonglian Mining Co. Henan Geologi av Asia-afrikanske av Henan Geologi teknisk samarbeid med International Ltd Henan Zhengzhou Geology & Mineral Exploration Institute Parent company (China) company Parent Namibia Namibia Nigeria Zambia South Africa Zambia DR Congo Zambia DR Congo South Africa DR Congo Ghana DR Congo DR Congo Ethiopia Zambia Nigeria Botswana Ghana Ethiopia Country/region Table 1. continued Table 14 Huang Wenbin and Andreas Wilkes continued on next continued page 14 July 2009 5 November 2007 5 November 27 November 2008 27 November 20 December 2010 20 December 31 July 2009 20 December 2007 20 December 22 December 2010 22 December 5 January 2010 29 September 2007 2 March 2005 2 March 30 October 2007 20 August 2010 20 August 7 December 2009 7 December 17 April 2006 30 June 2008 13 October 2009 10 August 2009 10 August 5 May 2010 5 May 9 July 2010 23 November 2007 23 November 16 September 2009 5 March 2009 5 March 21 May 2010 21 May Approval date Approval Mining production exploration, and processing Mineral extraction and trade Mining and trade exploration Mining and extraction exploration Mining exploration Mining and processing exploration Mining and extraction exploration Mining and trade exploration Mining production exploration, and processing Mining and trade exploration Mining and processing exploration Mining production exploration, and processing Mining and trade exploration Mining and trade exploration Mining and trade exploration Mining and trade exploration Mining and trade exploration Mining exploration Mining exploration Mining and trade exploration Mining exploration Mining and trade exploration Processing Business Metal Mines SPRL South Africa Shengbao Mining Co. Ltd South Shengbao Mining Africa Co. Jiuli Nigeria Co. Ltd Jiuli Nigeria Co. Zhongrui Mining Investment Co. Ltd Co. MiningZhongrui Investment Liaoning Non-ferrous Zambia Liaoning Non-ferrous Company Uncertain Liaoning Nonferrous Geological Geological Liaoning Nonferrous Institute Zambia Company Exploration Sanhe Mining Investment Co. Ltd Ltd Co. Sanhe Mining Investment Zambia Company Runding Industrial Congo Co. Ltd Runding Industrial Co. Congo CHIMAN Manufacture Co. Ltd Manufacture Co. CHIMAN Uncertain Sudan JinYu International Investment International Investment Sudan JinYu Ltd Co. Trade and Uncertain JNMC DRC Office South Africa JNMC Resource Co. Ltd Co. South JNMC Resource Africa JCHX Africa Development Co. Ltd Co. Development JCHX Africa Bowang Mining Investment Co. Ltd Co. MiningBowang Investment Uncertain Jiangdi Africa Fengyuan Mining Nigeria Co. Ltd Mining Nigeria Co. Fengyuan Kingan Morocco Mining Co. Ltd MiningKingan Co. Morocco Hai Lun Mining Co. Ltd Mining Co. Hai Lun ICAM Company name Company Naijing Hairui Cobalt Naijing Hairui Cobalt Linyi Jiuli Food Co. Ltd Co. Jiuli Food Linyi Liaoning Zhongrui Mining Co. Ltd MiningLiaoning Zhongrui Co. Liaoning Non-ferrous Jubao Mining Co. Ltd Jubao Mining Co. Liaoning Non-ferrous Liaoning Xin Xing Mining Development Co. Ltd Liaoning Xin Xing Mining Co. Development Liaoning Nonferrous Geological Exploration Institute Exploration Geological Liaoning Nonferrous Liaoning Sanhe Mining Investment Co. Ltd Co. Liaoning Sanhe Mining Investment Liaoning Jinding Magnesite Group Liaoning Jinding Magnesite Liaoning Huazan Foreign Trade Co. Ltd Co. Trade Liaoning Huazan Foreign Jiuquan Iron & Steel (Group) Co. Ltd Co. (Group) Jiuquan Iron & Steel Jinzhou Xintai trading Co. Ltd Co. trading Jinzhou Xintai Jinchuan Group Limited (JNMC) Limited Jinchuan Group Jinchuan Group Limited (JNMC) Limited Jinchuan Group Jinchuan Group Limited (JNMC) Limited Jinchuan Group JCHX Mining Construction Group Jiangxi Western Africa Mining Development Co. Ltd Mining Co. Africa Development Western Jiangxi Jiangxi Geo-mineral General Development Corporation Jiangxi Geo-engineering Corporation (Group) Jiangxi Baofeng Mining IndustryLtd Jiangxi Baofeng Co. Jiangxi Kingan Hi-Tech Co. Ltd Co. Jiangxi Kingan Hi-Tech Jiangxi Gold Fuda Mining Co. Ltd Mining Co. Jiangxi Gold Fuda Jiangsu Bureau of Coal Geology of Coal Jiangsu Bureau Parent company (China) company Parent DR Congo South Africa Nigeria Zambia Zambia Zambia Zambia Zambia DR Congo Zambia South Africa Sudan DR Congo DR Congo South Africa Zambia Nigeria Namibia Tanzania Nigeria Morocco DR Congo DR Congo Country/region Table 1. continued Table Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 15 continued on next continued page 4 January 2006 7 April 2006 6 November 2009 6 November 4 March 2008 4 March 24 June 2009 12 November 2010 12 November 20 July 2010 2 June 2009 8 May 2009 8 May 25 November 2010 25 November 26 October 2009 26 October 2009 11 December 2007 11 December 29 November 2004 29 November 22 December 2008 22 December 20 March 2009 20 March 8 November 2005 8 November 28 April 2006 28 June 2006 23 November 2006 23 November Approval date Approval Mining exploration Mining and trade exploration Mining and trade exploration Mining and trade exploration Mining production and trade Mining exploration Mining exploration Mining exploration Mining exploration Mining and trade exploration Mining exploration Mining and trade exploration Mining and trade exploration Mining and trade exploration Mining and trade exploration Mining and trade exploration Mining production exploration, and processing Mining production exploration, and processing Mining production exploration, and processing Mining and trade exploration Business Hongbang Mining (DRC) Co. Ltd Hongbang Mining (DRC) Co. Shanxi Mining (Ghana) Co. Ltd Shanxi MiningCo. (Ghana) Shaanxi Geological Engineering Engineering Shaanxi Geological Overseas Company Corporation Zambia Zheng Yuan Co. Ltd Co. Yuan Zambia Zheng Eritrea Shandong Mining Co. Ltd Shandong MiningEritrea Co. Namibia Huadi Mining Investment Co. Co. Namibia Huadi Mining Investment Ltd Congo Huadi Mining Co. Ltd Huadi MiningCongo Co. Joint MiningJoint IndustryLtd Co. Sheng Stem Investment Tanzania Co. Co. Tanzania Investment Sheng Stem Ltd Congo Luyuan Mining Co. Ltd Mining Co. Luyuan Congo Jialin Group Tanzania Co. Ltd Co. Tanzania Jialin Group Xinglong Africa Mining Co. Ltd MiningXinglong Africa Co. Ningbo Xinglong Vehicle IndustryVehicle Co. Ningbo Xinglong Company Congo Ltd Zhoonghui Mining Industry and Trade Zhoonghui MiningTrade Industry and Co. Ltd Zhoonghui Mining Investment Zhoonghui Mining Investment Ltd Co. Development Hwazhou Mining Gabon Trading Co. Co. Trading Hwazhou Mining Gabon Ltd Hwazhou Mining Gabon Co. Ltd Hwazhou Mining Gabon Co. ZHX International Metal Co. Ltd. ZHX International Metal Co. Congo Shengbao Mining Co. Ltd Shengbao MiningCongo Co. Company name Company Shanghai Hongbang Development Co. Ltd Co. Shanghai Hongbang Development Shanghai Overseas Company Shaanxi Mining Development Co. Ltd Shaanxi Mining Co. Development Shaanxi Geological Engineering Corporation Engineering Shaanxi Geological Shandong Zheng Yuan Geology Resources Geology Resources Yuan Shandong Zheng Ltd Co. Exploration Shandong No. 4 Institute Mineral of Geological Shandong No. Survey Shandong Deep Base Construction Engineering Corporation Shandong Geo-mineral Institute Shandong Geo-mineral Corporation Shandong Sheng Stem Heavy Mining Shandong Sheng Stem Equipment Ltd Shandong Luyuan Investment Co. Ltd Co. Investment Shandong Luyuan Rizhao Jialin Trading Co. Ltd Co. Trading Rizhao Jialin Ningbo Xinglong Investment Co. Ltd Co. Ningbo Xinglong Investment Ningbo Xinglong Vehicle IndustryLtd Vehicle Co. Ningbo Xinglong Ningbo Mining Investment Co. Ltd Ningbo Co. Mining Investment Ningbo Mining Investment Co. Ltd Ningbo Co. Mining Investment Hwazhou Group Hwazhou Group Nantong Xiongfeng Metal Material Co. Ltd Metal Material Co. Xiongfeng Nantong Naijing Hairui Cobalt Parent company (China) company Parent DR Congo DR Congo Ghana Algeria Zambia Eritrea Namibia Congo Ethiopia Tanzania Congo Tanzania DR Congo Congo Gabon Gabon Gabon Gabon DR Congo DR Congo Country/region Table 1. continued Table 16 Huang Wenbin and Andreas Wilkes continued on next continued page 10-Feb-09 16 January 2007 5 May 2009 5 May 19 August 2009 19 August 6 March 2009 6 March 6 May 2009 6 May 16 May 2008 16 May 26 November 200 26 November 31 December 2008 31 December 2010 26 November 8 July 2008 4 March 2009 4 March 2 December 2009 2 December 20 September 2010 22 October 2007 14-Aug-07 24 May 2010 24 May 11 May 2010 11 May 27 October 2010 5 November 2008 5 November 17 March 2008 17 March 17 December 2007 17 December Approval date Approval Mining and trade exploration Mining and trade exploration Mining production exploration, and processing Trade Mining production exploration, and processing Processing Mining and extraction exploration Trade Mining and trade exploration Mining and processing exploration Mining and trade exploration Mining exploration Mining production exploration, and processing Mining and trade exploration Mining production exploration, and processing Processing Processing Mining and processing exploration Mining and trade exploration Mining production exploration, and processing Mining and trade exploration Business Algeria Shao Lin Mining Co. Ltd Algeria Shao Lin Mining Co. Congo Jiu Lun Mining Co. Ltd Mining Co. Jiu Lun Congo Congo Dong Fang International Dong Fang Congo Mining Spr Dong Fang International Mining Spr Dong Fang Jia Xing Mining (Congo) Co. Ltd Co. Jia Xing Mining (Congo) Jia Xing Mining (Zambia) Co. Ltd Jia Xing Mining (Zambia) Co. Ming Yue DRC Mining Co. Ltd DRC Mining Co. Yue Ming Zambia Maosheng Mining Co. Ltd Zambia Maosheng Mining Co. Ltd Xinxing Mining Zambia Co. Xing Xiang Co. Ltd Xing Xiang Co. Zambia Fu Xin Investment Co. Ltd Co. Xin Investment Zambia Fu Lu Xiang Mining Co. Ltd Xiang Mining Co. Lu Hua Kan Mining Algeria Co. Ltd Hua Kan Mining Algeria Co. South Africa De Feng Mining Co. Ltd Mining Co. South De Africa Feng Sichuan Hua Suo (Zambia) Mining Co. Sichuan Hua Suo (Zambia) Mining Co. Ltd Hongda International Mining Ltd Co. Resources Tongyi Lead–Zinc Mining Zambia Co. Mining Zambia Co. Lead–Zinc Tongyi Ltd China–Africa International Mining Co. International MiningChina–Africa Co. Ltd Congo Union Mining Co. Ltd Union MiningCongo Co. Kuntai Congo Mining Co. Ltd Mining Congo Co. Kuntai Jia Cuang Mining Investment Co. Ltd Co. Mining Jia Cuang Investment Maofa Mining Co. Ltd Maofa Mining Co. Company name Company Zhejiang Qianjiang Group Zhejiang Jiu Lun Garment Co. Ltd. Garment Co. Zhejiang Jiu Lun Zhejiang Huayou Cobalt Zhejiang Huayou Zhejiang Huayou Cobalt Zhejiang Huayou Yinkou BL Mining Co. Ltd BL Mining Co. Yinkou Yinkou BL Mining Co. Ltd BL Mining Co. Yinkou Yixing Mingyue Ceramics Co. Ltd Co. Mingyue Ceramics Yixing Xinxing Ductile Iron Pipes Co Ltd Xinxing DuctileCo Iron Pipes Ltd Xinxing DuctileCo Iron Pipes Xiangtan Liquefied Petroleum Gas (LPG) Co. Ltd Co. Gas (LPG) Petroleum Xiangtan Liquefied Xiangtan Hong Xin Investment Co. Ltd Co. Xiangtan Hong Xin Investment Xiamen Tungsten Co. Ltd (XTC) Ltd Co. Tungsten Xiamen Tianjin Hua KanTianjin Suzhou Kaiyuan Group Sichuan Hua Suo Automation Information Information Sichuan Hua Suo Automation Ltd Co. Engineering Sichuan Hongda Group Shanghai Tongyi Steel Material Co. Ltd Material Co. Steel Tongyi Shanghai Shanghai Kuntai Group Shanghai Kuntai Shanghai Kuntai Group Shanghai Kuntai Shanghai Kuntai Group Shanghai Kuntai Shanghai Jiachuang Group Shanghai Huangpu Cereals, Oils and Foodstuffs Oils and Foodstuffs Cereals, Shanghai Huangpu Ltd Co. Development Parent company (China) company Parent Algeria DR Congo DR Congo South Africa DR Congo Zambia DR Congo Zambia Zambia Zambia Zambia Rwandan Algeria South Africa Zambia Tanzania Zambia DR Congo DR Congo DR Congo DR Congo DR Congo Country/region Table 1. continued Table Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 17 continued on next continued page 7 September 2009 12 December 2005 12 December 12 December 2005 12 December 29 December 2009 29 December 16 March 2009 16 March 26-Aug-10 6 March 2009 6 March 25 June 2007 18 June 2009 23 March 2010 23 March 10 June 2009 14 September 2010 5 March 2010 5 March 23 September 2009 8 February 2010 8 February 29 July 2010 21 May 2008 21 May 21 October 2010 23 September 2009 Approval date Approval Mining production exploration, and processing Processing Processing Mining production exploration, and processing Mineral extraction Mining exploration Mining and trade exploration Mineral extraction and processing Mining and trade exploration Mining and trade exploration Resource extractionResource Mining exploration Mining exploration Mining and trade exploration Mining production exploration, and processing Market research Mining production exploration, and processing Mining exploration Mining and trade exploration Business Luanshya Copper Mines Copper Luanshya Uncertain Sino-Metals (Zambia) Limited Leach Botswana Central-south Resource Co. Co. Resource Botswana Central-south Ltd Sicomines SarlSicomines Sierra Leone Qing Hua Investment Co. Co. Qing Hua Investment Leone Sierra Ltd China Henan International (CHICO) Ltd Co. Group Cooperation Namibia Company DRC Luishia Mining Co. Ltd Mining DRC Co. Luishia CNNC Resource Extraction Co. Ltd ExtractionCNNC Resource Co. Bin Hai Mining Co. Ltd Bin Hai Mining Co. CGC Southern Africa Co. Ltd Southern Co. Africa CGC Uncertain Uncertain HAMADI Resource Co. Ltd Co. Resource HAMADI China–Africa NorthChina–Africa China Geological Ltd Co. Investment Exploitation CPI International Mining Investment CPI International Mining Investment Guinea Company Ltd Co. TPI Industrial Co. Ltd TPI Industrial Co. Zhong Lu Mining Development Co. Ltd Mining Co. Development Zhong Lu China–Africa Mining Co. Ltd MiningChina–Africa Co. Company name Company China Nonferrous Metal Mining (Group) Co. Ltd Ltd Co. Metal Mining (Group) China Nonferrous (CNMC) China Nonferrous Metal Mining (Group) Co. Ltd Ltd Co. Metal Mining (Group) China Nonferrous (CNMC) China Nonferrous Metal Mining (Group) Co. Ltd Ltd Co. Metal Mining (Group) China Nonferrous (CNMC) Central South China Bureau of Metallurgical of Metallurgical South China Bureau Central Geology Sinohydro China Qing Hua Group China Henan International Cooperation Group Co. Co. Group China Henan International Cooperation (CHICO) Ltd China Overseas Engineering Group Co. Ltd Co. China Overseas Group Engineering China National Nuclear Corporation (CNNC) Nuclear Corporation China National China National geological & Mining geological China National Corp.(CGM) China Geo-Engineering (CGC) Corporation China–Africa Investment Development Co. Ltd Co. Development Investment China–Africa China–Africa NorthChina–Africa Exploitation China Geological Ltd Co. Investment China–Africa NorthChina–Africa Exploitation China Geological Ltd Co. Investment China–Africa NorthChina–Africa Exploitation China Geological Ltd Co. Investment China Power Investment Corporation (CPI) (CPI) Corporation Investment China Power Ltd Co. International Mining Investment CGCOC Hansom (Beijing) Trading Co. Ltd Co. Trading Hansom (Beijing) CGCOC Zhong Lu Resources Investment Co. Ltd Co. Investment Resources Zhong Lu Zhejiang Zi Hua Mining Co. Ltd Zhejiang Zi Hua Mining Co. Parent company (China) company Parent Zambia Zambia Zambia Botswana DR Congo Sierra Leone Sierra Namibia DR Congo Namibia Cote d’Ivoire Cote Zambia Sudan Sudan Sudan Eritrea Guinea Zambia Eritrea Zambia Country/region Table 1. continued Table 18 Huang Wenbin and Andreas Wilkes 13 June 2010 27 July 2007 25 December 2008 25 December 22 May 2009 22 May 25 December 2008 25 December 17 September 2009 14 July 2010 30 October 2007 7 October 2008 27 May 2010 27 May 14 May 2010 14 May 17 July 2008 31 March 2008 31 March 20 April 2006 Approval date Approval Mining exploration Mining production exploration, and processing Mining production exploration, and processing Mining production exploration, and processing Mining exploration Mining and trade exploration Mining and trade exploration Mining production exploration, and processing Mining production exploration, and processing Mining exploration Mining exploration Mining and processing exploration Mineral extraction and trade Mining and trade exploration Business Yu Zambia Mining Co. Ltd Zambia Mining Co. Yu Ethiopia Southeast Mining Co. Ltd SoutheastEthiopia Mining Co. Rui Feng Mining Co. Ltd Mining Co. Rui Feng Beijing Southeast Asia Resource and Beijing SoutheastResource Asia Ltd Co. Technology Angola Duo Li Mining Co. Ltd Duo Angola Li Mining Co. CNMIC Africa Logistic and Trade Co. Co. Trade and Logistic CNMIC Africa Ltd Zambia Kun lun Gu Ming Co. Ltd lun Gu MingZambia Kun Co. Zambia Sinomine Construction Ltd Co. Engineering Zambia Sinomine Mining Resource Co. Zambia Sinomine MiningCo. Resource Ltd China Chemical Geology and Mine Ltd (Namibia) Co, Bureau China Chemical Geology and Mine Ltd (Zambia) Co, Bureau Sinosteel Corporation Cameroon Co. Co. Cameroon Corporation Sinosteel Ltd Tubatse Chrome Minerals Pty. Ltd Minerals Pty. Chrome Tubatse NCFA Mining NCFA Company name Company Chongqing Bureau of Geology and MineralChongqing Bureau Exploitation Beijing Donia Resources Co. Ltd Co. Beijing Donia Resources Beijing Donia Resources Co. Ltd Co. Beijing Donia Resources Beijing Donia Resources Co. Ltd Co. Beijing Donia Resources Beijing Donia Resources Co. Ltd Co. Beijing Donia Resources CNMC International Trade Co. Ltd Co. Trade CNMC International Zhongrunhualong Group Zhongrunhualong Sinomine Resource Exploration Co. Ltd (Beijing Ltd Co. Exploration Sinomine Resource Ltd) Sinomine ConstructionCo. Engineering Sinomine Resource Exploration Co. Ltd (Beijing Ltd Co. Exploration Sinomine Resource Ltd) Sinomine ConstructionCo. Engineering Shandong Geological Prospecting Institute of China Prospecting Shandong Geological Chemical Geology and Mine Bureau Hunan Geological Prospecting Institute of China Prospecting Hunan Geological Chemical Geology and Mine Bureau Sinosteel Corporation Sinosteel Sinosteel Corporation Sinosteel China Nonferrous Metal Mining (Group) Co. Ltd Ltd Co. Metal Mining (Group) China Nonferrous (CNMC) Parent company (China) company Parent Zambia Ethiopia Ethiopia Eritrea Angola Zambia Zambia Zambia Zambia Namibia Zambia Cameroon South Africa Zambia Country/region Table 1. continued Table Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 19 continued on next continued page 19 January 2009 22 July 2008 19 August 2009 19 August 23 December 2009 23 December 7 May 2003 7 May 29 November 2006 29 November 17 December 2007 17 December 4 January 2008 9 May 2008 9 May 22 September 2008 10 December 2009 10 December 22 December 2009 22 December 14 July 2010 25 February 2009 25 February 9 August 2004 9 August 22 May 2006 22 May 22 January 2008 18 April 2008 17 September 2010 20 November 2009 20 November 22 November 2010 22 November 13 August 2009 13 August Approval date date Approval Timber logging and trade logging Timber Timber and timber products Timber extraction Paper manufacture Paper Furniture manufacture Furniture Timber production and trade Timber Sales service Forest logging and timber logging Forest processing Forest logging and timber logging Forest processing Forest management Forest Forest management Forest Timber processing Timber Forest logging and timber logging Forest processing Forest management and plywood management Forest production All kindsAll of paper Roundwood logging, plywood logging, Roundwood processing Rare wood trade Rare wood Timber logging and processing logging Timber Plywood Forest project investment Forest Wood floor manufacture Wood Forest resource extraction resource Forest Timber processing Timber Business Yu Shi International Stock Co. Ltd Co. Shi International Stock Yu Jiangsu Jiaya International Investment International Investment Jiangsu Jiaya Guinea Company Ltd Co. Group Uncertain Hua Wei Furniture Co. Ltd Co. Furniture Wei Hua Hua Peng Wood. Co. Ltd Co. Wood. Hua Peng Shaoxing Wandi Co. Ltd Co. Wandi Shaoxing Merry Ltd Gabon Co. Gabon Loulin Co. Ltd Co. Gabon Loulin Uncertain Gabon Forest Development Co. Ltd Co. Development Gabon Forest Gabon Jia De Timber Co. Ltd Co. Timber Gabon Jia De International Timber Transportation Transportation International Timber Corporation and Trade Gabon International Shengyang IndustryLtd Forestry Co. Yun Long Paper Mill Paper Long Yun Equator Sijifu Co. Ltd Sijifu Co. Equator Fareast Wood Congo Co. Ltd Co. Congo Wood Fareast Congo Dejia Wood Co. Ltd Co. Wood Dejia Congo Uncertain Cameroon Sfeicom Stock Co. Ltd Co. Stock Sfeicom Cameroon Benin Yilin Wood Co. Ltd Co. Wood Yilin Benin Shunfeng Wood. Co. Ltd Co. Wood. Shunfeng Xun Tong International Industrial Co. International Industrial Co. Tong Xun Ltd Company name Company Ningbo Jujin Investment Co. Ltd Co. Ningbo Jujin Investment Jiangsu Jiaya International Investment Group Co. Ltd Co. Group International Investment Jiangsu Jiaya Huasheng Jiangquan Group Xiangtan High-Tech Zone Zhi Yao Metallurgical Metallurgical Yao Zhi Zone Xiangtan High-Tech Ltd Materials Co. Shen Zhen Qiyang Industrial Development Co. Ltd IndustrialShen Zhen Qiyang Co. Development Shaoxing Wandi Wood Wood Co. Ltd Wandi Shaoxing Ahlers (Zhangjiagang Free Trade Zone) International Zone) Trade (Zhangjiagang Free Ahlers Ltd Co. Trading Zhangjiagang Free Trade Zone Ganglin International Zone Trade Zhangjiagang Free Ltd Co. Trade Guangzhou Dingtian Wood Co. Ltd Co. Wood Guangzhou Dingtian Wenzhou Timber Group Co. Group Timber Wenzhou Xianju Jiade Arts & Crafts Co. Ltd Xianju Jiade Arts & Crafts Co. Shandong Longsheng ImportShandong Longsheng Ltd & Export Co. Jiangsu Shengyang IndustryJiangsu Shengyang Yongxing Cooperation Ltd Cooperation Yongxing Jiangsu Shengyang IndustryJiangsu Shengyang Bengbu Fuda Material Co. Ltd Material Co. Bengbu Fuda Dejia Wood Co. Ltd Co. Wood Dejia Zhejiang Jiashan Xianghua Wood Work Co. Ltd Co. Work Wood Zhejiang Jiashan Xianghua Hangzhou Sfeicom Imp & Export Co. Ltd Imp & ExportHangzhou Sfeicom Co. Sehnzhen Yilin Wood Co. Ltd Co. Wood Yilin Sehnzhen Nanjing Mai Jie Kai Fei Trading Co. Ltd Co. Trading Nanjing Mai Jie Kai Fei Jiangsu Kaitong Industry Plastics Parent company (China) company Parent Chinese companies approved to invest in African forestry in African invest to approved companies Chinese Liberia Guinea Ghana Ghana Gabon Gabon Gabon Gabon Gabon Gabon Gabon Gabon Gabon Ethiopia Equatorial Equatorial Guinea Congo Congo Congo Cameroon Benin Benin Angola Country/region Table 2. Table 20 Huang Wenbin and Andreas Wilkes 21 May 2009 21 May 30 November 2009 30 November 24 November 2010 24 November 14 September 2010 27 November 2006 27 November 7 November 2007 7 November 28 November 2008 28 November 16 June 2009 22 September 2009 13 February 2004 13 February 2 December 2009 2 December Approval date date Approval Timber and timber product sales Timber Furniture manufacture Furniture Paper manufacture Paper Forestry and landscape Forestry Plywood processing Plywood Plywood processing Plywood Plywood processing Plywood Furniture manufacture Furniture Furniture manufacture Furniture Paper manufacture Paper Timber logging and trade logging Timber Business Uncertain Afrizam Timber Timber Afrizam Limited Zambia Hui Yu Paper Mill Paper Yu Zambia Hui Uncertain Zhongyang Industrial (Nigeria) Co. Ltd IndustrialZhongyang (Nigeria) Co. Wanguo Wood (Nigeria) Co. Ltd (Nigeria) Co. Wood Wanguo Jiu Li Wood (Nigeria) Co. Ltd (Nigeria) Co. Wood Jiu Li Uncertain Uncertain Uncertain The Atlantic International Investment International Investment Atlantic The Co. Ltd. Company name Company Suzhou Golden Ocean Co. Ltd Suzhou Golden Co. Ocean Suzhou Golden Ocean Co. Ltd Suzhou Golden Co. Ocean Guangzhou Huiyu Trade Ltd Trade Guangzhou Huiyu Huaqiao Fenghuang Group Huaqiao Fenghuang Linyi Zhongba Food Co. Ltd Co. Zhongba Food Linyi Linyi Millioner Bio-IndustryLinyi Ltd Co, Linyi Jiuli Food Co. Ltd Co. Jiuli Food Linyi Zhengzhou Redsun Furniture Company Ltd Company Zhengzhou Redsun Furniture Hongkong Longgang Furniture Ltd Furniture Hongkong Longgang Shanxi Grain Trade Center Trade Shanxi Grain Ningbo Ningdian Ltd Imp & Export Co. Parent company (China) company Parent Zambia Zambia Zambia South Africa Nigeria Nigeria Nigeria Nigeria Nigeria Mauritius Liberia Country/region Table 2. continued Table Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 21 continued on next continued page 18 November 2009 18 November 27 November 2006 27 November 23 November 2009 23 November 18 September 2008 16 February 2007 16 February 17 November 2009 17 November 2 September 2004 4 November 2005 4 November 12 January 2010 23 December 2009 23 December 29 July 2008 29 October 2007 29 January 2007 31 August 2005 31 August 23 June 2010 22 June 2009 26 June 2002 11 July 2007 Approving time Approving Agricultural products processing Agricultural Crop cultivation, animal husbandry cultivation, Crop Cotton production Cotton Palm oil Palm Farm Farm Grape production Grape Cotton production Cotton Native products’ production and products’ Native sale Medicine cultivation plant Crop and plant cultivation and plant Crop Crop cultivation, animal husbandry cultivation, Crop processing and related Organic vegetable production vegetable Organic Vegetable and fruit production and Vegetable sale Rice cultivation Chicken farm Chicken farm Vegetable production and sale Vegetable Business Sudan–China Development Joint Corporation Elaborates Shen Investment Company Shen Investment Elaborates Jiangxi Yaxing Textile Industry Co. Ltd IndustryLtd Co. Textile Yaxing Jiangxi (South Subsidiary) Africa Abia Palm Nigeria Limited Palm Abia Green West Africa Limited Africa West Green Green Agricultural Development Development Agricultural Green Nigeria Limited Qianlima Investment Limited Company Limited Qianlima Investment Tianli Spinning (Mauritius) Ltd Tianli Kenya Shun Mao Co. Ltd Shun Mao Co. Kenya Ghana G.C. Bio-Tec Inc. Ghana G.C. Bio-Tec Ghana New Oriental High-Tech Ghana New Oriental High-Tech and Development Research Agriculture Center Akok Farm Development Co. Ltd Co. Development Farm Akok North China Farm China–Equatorial Guinea Agriculture Guinea Agriculture China–Equatorial Ltd Co. Development Sino-Cameroon Iko Agriculture Sino-Cameroon Iko Agriculture Ltd Co. Development Cameroon Huan Yu Animal Husbandry Animal Yu Huan Cameroon Company Cameroon Lion Animal Husbandry Co. Husbandry Lion Animal Cameroon Co. Ltd Angola Taishan Industrial Development Taishan Angola Co. Ltd Company name Company Fujian Ude Electrical Ltd MachineryFujian Co. Anhui Wanling Rare Animal Breed Limited Limited Breed Rare Animal Wanling Anhui Liability Company Jiangxi Yaxing Textile IndustryLtd Co. Textile Yaxing Jiangxi Zhengzhou Cangxi IndustryZhengzhou Cangxi and Commerce Ltd Co. Development CGCOC Group Co. Ltd Co. Group CGCOC CGCOC Group Co. Ltd Co. Group CGCOC Wuhan Xin Neng Group Wuhan Shanxi Tian Li Enterprises Co. Ltd Co. Li Enterprises Tian Shanxi Linying Fangyuan Foreign Trade Co. Ltd Co. Trade Foreign Fangyuan Linying Sichuan Sanherb Inc., Biotech Yancheng County Si Kai County Chemical Er Daily-Use Yancheng Industry Ltd Co. Guangzhou Shi Mao Scientific Industrial and Ltd Co Trading Shenyang Jiang Hong Foreign Trade Corp. Ltd Corp. Trade Jiang Hong Foreign Shenyang Tian Jin Hai Xin Da Commercial Co. Ltd Co. Jin Hai Xin Da Commercial Tian Shanxi Land Reclamation Co. Ltd Shanxi Land Reclamation Co. Shanxi Construction Engineering Group (Co.) Shanxi ConstructionGroup Engineering Shijiazhuang Lion Feed Group Shijiazhuang Lion Feed Tanan Liren Imp & Export Co. Ltd Imp Liren & Export Co. Tanan Parent company (China) company Parent Chinese companies approved to invest in African agriculture in African invest to approved companies Chinese Sudan South Africa South Africa Nigeria Nigeria Nigeria Mauritius Mauritius Kenya Ghana Ghana Gabon Ethiopia Equatorial Equatorial Guinea Cameroon Cameroon Cameroon Angola Country/region Table 3. Table 22 Huang Wenbin and Andreas Wilkes 12 December 2008 12 December 12 September 2008 12 September 2008 20 August 2008 20 August 15 August 2008 15 August 7 December 2006 7 December 9 October 2006 9 May 2006 9 May 9 May 2006 9 May 7 September 2009 20 November 2008 20 November 20 December 2010 20 December 20 December 2010 20 December 9 August 2010 9 August 20 February 2008 20 February 28 December 2010 28 December 13 April 2010 19 March 2010 19 March 12 December 2008 12 December Approving time Approving Bio-energy production Crop cultivation and processing cultivation Crop Animal husbandryAnimal and crop cultivation Animal husbandryAnimal and crop cultivation Animal husbandryAnimal and forage processing Agricultural products production Agricultural Crop and plant cultivation and plant Crop Chicken farm Cotton and edible oil production Cotton Cotton and its products production Cotton Crop cultivation, forestry and cultivation, Crop animal husbandry Ramie products production yam Sisal hemp production and processing Sisal hemp production and processing Agricultural products production Agricultural Sisal hemp production Cotton production Cotton Agricultural products production Agricultural Vegetable and crop production and crop Vegetable Business Heidi Biomass Zambia Co. Ltd Heidi Biomass Zambia Co. Jiang Quan International Corporation Xinghua Agricultural Investment Investment Xinghua Agricultural Company Daliang Agriculture Investment Co. Ltd Co. Investment Daliang Agriculture Hua Fei Livestock (Zambia) Co. Ltd (Zambia) Co. Livestock Hua Fei Feng Run Investment Zambia Co. Ltd Zambia Co. Run Investment Feng Hua Feng Investment Co. Ltd Co. Investment Hua Feng Kaifeng Agriculture Investment Co. Ltd Co. Investment Kaifeng Agriculture The Zambia China Mulungushi Textiles Textiles Zambia China Mulungushi The (ZCMT) Chipata Cotton Co. Ltd Co. Cotton Chipata Hanhe Uganda Hebei Farm Togo 5 Star Textile Co. Ltd Co. Textile 5 Star Togo China Agricultural Reclamation (Group) Reclamation (Group) China Agricultural Limited Tanzania Tanzania China–Africa Agriculture Agriculture China–Africa Tanzania Ltd Co. Investment Fa Da Agriculture Development Co. Ltd Co. Development Da Agriculture Fa Qi Lin (Tanzania) Co. Ltd Co. Qi Lin (Tanzania) Zhong Tian International IndustrialTian Zhong Corporation Sun Neng Co. Ltd Sun Neng Co. Sudan Agricultural Development Co. Ltd Co. Development Sudan Agricultural Company name Company Zhongying Changjiang International Investment Zhongying Changjiang International Investment Ltd Co. Guarantee Huasheng Jiangquan Group Kaifeng Huazhong Wan Tou Cultivation Co. Ltd Co. Cultivation Tou Wan Kaifeng Huazhong Kaifeng The Shelter-Forest Virescence Virescence Kaifeng The Shelter-Forest Ltd Management Co. Giant Hui Autonomous County Shuailin County Hui Autonomous Giant Farms Comprehensive Hangzhou Changrun Plastic Products Co. Ltd Co. Products Plastic Hangzhou Changrun Huayong Overseas Agri-Scientific Technology Overseas Agri-Scientific Huayong Ltd (Beijing) Co. Kaifeng China–Zambia Agriculture & Forestry & Forestry Kaifeng China–Zambia Agriculture Ltd Co. Development Qingdao Textiles Group Qingdao Textiles Qingdao Textiles Group Qingdao Textiles Hebei Hanhe Investment Co. Ltd Co. Hebei Hanhe Investment Hunan Zhulu Ramie Textile Co. Ltd Co. Textile Hunan Zhulu Ramie China-Africa Agriculture Investment Co. Ltd Co. Investment Agriculture China-Africa China-Africa Agriculture Investment Co. Ltd Co. Investment Agriculture China-Africa Shijiazhuang Hui Heng Fu De Run Imp & Exp Co. De Run Imp & Exp Co. Shijiazhuang Hui Heng Fu Ltd Hainan Qi Lin Technology Co. Ltd Co. Technology Hainan Qi Lin Shandong Tianyuan Home Textile Co. Ltd Co. Textile Home Tianyuan Shandong Zhongneng Enterprise Development (Group) Co. Co. (Group) Development Enterprise Zhongneng Ltd Binzhou Feng Hui Trading Co. Ltd Co. Trading Hui Binzhou Feng Parent company (China) company Parent Zambia Zambia Zambia Zambia Zambia Zambia Zambia Zambia Zambia Zambia Uganda Togo Tanzania Tanzania Tanzania Tanzania Sudan Sudan Sudan Country/region Table 3. continued Table Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 23 408 411 549 600 651 779 812 879 1 386 1 508 2 568 14 000 continued on next continued page Value (million USD) Value USA Hong Kong China South Africa Australia Vendor country Vendor Harbinger Capital Partners Partners Harbinger Capital Fund, Special Situations Harbinger Capital L.P., I Ltd Master Fund Partners Ceasers Development Ltd Development Ceasers E Oppenheimer & Son OZ Mineral Co. Ltd OZ Mineral Co. Vendor Hunan Valin Iron & Steel Iron & Steel Valin Hunan Ltd. Co. Group China Minmetals Corp & Jiangxi Copper Corporation China Railway Construction Corporation Limited China Elegance Resources Resources China Elegance Ltd China Power Investment Investment China Power Ningxia Corporation Energy Qingtongxia Ltd. Co. Group Aluminum Aluminium Corporation Corporation Aluminium of China China Vision China Vision Resources Sinosteel Group Sinosteel China Minmetals Non- Ltd Metals Co. ferrous Fullbloom Investment Fullbloom Alcoa Inc Alcoa & Aluminium of China Corporation Mining Coal Yanzhou Limited Company Buyer Australia Canada Canada Chile India Canada UK Australia Australia Canada UK Australia Target company company Target location Ford Basescu Metals Ford (9.07% stock Group right) Northern Peru Copper Northern Copper Peru of Canada Company Corriente Resources Inc. Resources Corriente Bellavista Holding Group Holding Group Bellavista right) (60% stock Ltd Ashapura Minechem Ashapura Ltd right in one (50% stock plant) Alumina Peru Copper Inc. Copper Peru Anglo American Plc American Plc Anglo right) (1.01% stock Midwest Corporation Ltd Ltd Midwest Corporation right) (80.31% stock OZ Mineral Co. Ltd Ltd OZ Mineral Co. (partly) 17.2% stock right of 17.2% stock Co. Resources Tektronix Ltd 12% stock right of Rio12% stock RTP PLC Tinto Co. Resources Phoenix Ltd Target company Target Major recent Chinese outward merger and acquisition events and acquisition merger outward Chinese Major recent Top 20 Chinese overseas merger and acquisition events (2003 to mid-2010) (2003 to events and acquisition merger overseas 20 Chinese Top 24 February 2009 24 February 6 December 2007 6 December 28 December 2009 28 December 29 August 2007 29 August 24 March 2006 24 March 11 June 2007 10 November 2006 10 November 14 March 2008 14 March 14 April 2009 3 July 2009 1 February 2008 1 February 2009 13 August Announcement date Announcement Annex 2. Annex 1. Table 24 Huang Wenbin and Andreas Wilkes 241 244 253 292 300 363 390 400 Value (million USD) Value Cyprus Turkey Brazil Vendor country Vendor Cordia Global Limited Cordia CVK Corporation Group Votorantim Novos Novos Votorantim Lit MiningNegocios Ltda, U.A. Cooperatief Vendor Baosteel Group Baosteel China Railway Materials Corporation Grandvest International Grandvest Ltd Steel Trading Company Trading Steel Taiyuan Iron and Steel Iron and Steel Taiyuan Ltd Co. Group Hunan Valin Iron & Steel Iron & Steel Valin Hunan Ltd. Co. Group Hongqiao Group Wuhan Iron and Steel Co. Co. Iron and Steel Wuhan Ltd. Buyer Australia Channel Islands Cyprus Zimbabwe Turkey Australia Brazil Brazil Target company company Target location Aquila Resources Limited Limited Resources Aquila right) (15% stock African Minerals African Limited right) (12.5% stock Langfeld Enterprises Enterprises Langfeld right) (90% stock Limited Zimasco (92% stock (92% stock Zimasco right) Krom Maden (50% stock right), Kop Krom (50% right), Guney Krom stock right) (50% stock Ford Basescu Metals Ford right) (42% stock Group Sul Americana de Metais S.A. MMX Mineracao e Metalicos SA (21.52% equity ) Target company Target 28 August 2009 28 August 6 January 2010 14 November 2008 14 November 26 September 2007 27 October 2009 24 February 2009 24 February 18 April 2010 30 November 2009 30 November Announcement date Announcement Table 1. continued Table (2010a) Deloitte Source: Analysis of approvals for Chinese companies to invest in Africa’s mining, agriculture and forestry sectors 25 Value Value (Million USD) 14 000 2 568 1 508 1 386 879 812 779 651 600 549 363 or 408 400 390 300 continued on next continued page Vendor country Vendor Australia South Africa China Hong Kong USA Brazil British Virgin Islands Vendor OZ Minerals Ltd E Oppenheimer & Son Aluminum Sichuan Aostar Co Ltd Ltd Development Ceasers Partners Harbinger Capital HCP Special Master Fund, Fund Situations UA; Lit Mining Cooperatief Negocios Novos Votorantim Ltd Ltd Rich Holdings Truffle Buyer Inc;Alcoa Chinalco Mining Coal Yangzhou Co Ltd Investment Fullbloom Corp China Minmetals Non- Ltd Metals Co Ferrous Corp Sinosteel China Vision Resources Chinalco Aluminium Qingtongxia Ltd Co Group China Elegance Ltd Resources CRCC-Tongguan Ltd Co Investment Iron & Steel Valin Hunan Ltd Co Group Co Iron & Steel Wuhan Ltd Honbridge Holdings Ltd Holding Co FinTronics Ltd Target company company Target location UK Australia Canada Australia Australia UK Canada India Chile Canada Australia Brazil Brazil Russia Target company Target (12% stake) Tinto Rio Ltd Resources Felix (17.2% Ltd Resources Teck stake) OZ Minerals (certain assets Hill & prominent excluding Martabe) (80.31% Ltd Midwest Corp stake) (1.01% American Plc Anglo stake) Inc. Copper Peru Minecham Ashapura Ltd in Kutch, plant (Alumina 50% stake) Ltd Holding Group Bellavista (60% stake) Inc. Resources Corriente Ltd Metals Group Fortescue (7.42% or 9.07% stake) MMX Mineracao e Metalicos SA (21.52% stake) Sul Americana de Metais SA Spring Vast Ltd Major mining sector M&A events outward February 2008 February 2009 August July 2009 April 2009 2008 March 2006 November June 2007 2006 March 2007 August 2009 December 2009 February 2009 November April 2010 2010 March Announcement date Announcement Table 2. Table 26 Huang Wenbin and Andreas Wilkes Value Value (Million USD) 300 411 240 253 292 200 Vendor country Vendor Turkey Cyprus South Africa Vendor Corp CVK group Global Ltd Cordia Ltd Chrome Samacor Buyer Iron & Steel Taiyuan Ltd Co Group Northern Peru Co Acquisition Co Iron & Steel Wuhan Ltd International Grandvest Ltd Co Trading Sinosteel Corp Sinosteel Target company company Target location Turkey Canada Canada Cyprus Zimbabwe South Africa Target company Target Guney Krom (50% stake) Kop Krom (50% stake) Krom Maden (50% stake) Corp Northern Copper Peru Thompson Consolidated Iron Mines (19.9% stake) Ltd Ltd Enterprises Langfeld (90% stake) Consolidated Zimasco (92% stake) Ltd Enterprises (chrome Chrome Samacor plant, mine & metallurgical 50% stake) October 2009 2007 December 2009 March 2008 November September 2007 2006 November Announcement date Announcement Table 2. continued Table been completed. have not yet Somedeals may Note: announced (2010b) Deloitte Source:

The impacts of Chinese investment in and trade with Africa have become the subject of much speculation. CIFOR’s ‘Chinese trade and investment in Africa’ project seeks to understand the impacts of China’s role in shifting global trade flows and investment patterns on forests in two African ecological regions, the Congo Basin and the southern African woodlands, with a focus on sectors with potential direct impacts on forests: mining, forestry and agriculture.

Globally, mergers and acquisitions (M&A) by Chinese companies have been increasing in recent years. Africa is the second most frequent destination for mining M&A events, and research shows increased interest in M&A activity in Africa. Most M&A activity is in the oil and mining sectors.

Further research is required to produce a comprehensive database of actual Chinese investment activities in Africa. M&A as a growing form of overseas investment by Chinese companies also merits investigation.

www.cifor.org www.blog.cifor.org

Center for International Forestry Research CIFOR advances human wellbeing, environmental conservation and equity by conducting research to inform policies and practices that affect forests in developing countries. CIFOR is one of 15 centres within the Consultative Group on International Agricultural Research (CGIAR). CIFOR’s headquarters are in Bogor, Indonesia. It also has offices in Asia, Africa and South America.