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azmg
10-31-2009, 19:21
Maybe someone can tell me if I'm on point in my line of thinking here.

- U.S. comes to the aide of the Afghan Govt., it's people in the fight against terrorism.

- U.S. soldiers make the ultimate sacrifice time and again in the aforementioned fight

- U.S. gets back-doored by the Afghan Govt and those people in a position to do so

I am not one to advocate a "war for profit" mentality but perhaps "aide for break-even" would be bit more mutually beneficial. Not that historically the U.S. hasn't been on the short end of the financial stick when it comes to aiding democracy in foreign lands but at this point in our history are we able to continue to offer assistance without any sort of remuneration? Now the article



By RICHARD LARDNER, Associated Press Writer Richard Lardner, Associated Press Writer – 1 hr 54 mins ago

WASHINGTON – At a former al-Qaida stronghold southeast of the Afghan capital, a state-owned Chinese company is at work on a $3 billion mine project to tap one of the world's largest unexploited copper reserves, a potential financial boon for an impoverished country mired in war.

The promise of a bright future at Aynak, however, cannot conceal the troubling reality of how business is often done in Afghanistan, according to critics of the Kabul government's decision to reject bids from competitors in the U.S., Canada and other countries.

The bidding process unfairly favored China, they allege, and epitomized the back-room deals and abuse of power that has turned Afghans against their government and undercut the U.S. military effort there.

Corruption and graft long have been ingrained in Afghanistan's public institutions. Yet the extent of this corrosion has taken on new significance as the White House considers expanding the U.S. commitment to a war unsupported by a growing number of Americans.

Widespread fraud in Afghanistan's presidential election in August has raised doubts about how quickly a stable and credible government can be installed. A U.N.-backed commission threw out nearly one-third of President Hamid Karzai's votes, setting the stage for a Nov. 7 runoff.

In his recent assessment of the situation in Afghanistan, the top U.S. commander warned that unchecked corruption has led alienated Afghans to support the Taliban-led insurgency.

Afghan officials insist the Aynak bidding was handled openly and honestly, and will create thousands of jobs. But several U.S. geologists and Western businessmen who watched the process closely disagree.

James Yeager, an American geologist who advised Afghanistan's minister of mines, says a few Afghan officials dominated a secretive selection process that gave the winner, China Metallurgical Group Corp., improbably high marks over its foreign competitors.

Said Tayeb Jawad, Afghanistan's ambassador to the United States, said the bidding process was above board. He said he pushed for the U.S. bidder, Phelps Dodge, to be awarded the Aynak rights, but that China offered to start work right away while Phelps wanted to wait until the country was safer.

"We can't afford to give the mining rights to a company that will sit on them for the next 10 or 15 years," Jawad said.

China Metallurgical, better known as MCC, has a poor track record with mining projects in other countries, according to Yeager and other critics. In neighboring Pakistan, for example, where MCC operates a copper mine, there's been little benefit to the local economy. But that information was ignored during the deliberations, they say.

MCC did not immediately respond to questions submitted by e-mail, as the company requested, about whether MCC received special treatment from the Afghan government on the Aynak bidding process; whether it was allowed to see copies of other bids, as at least one competitor alleges; or whether the Pakistan mine has failed to help the local economy.

The Aynak deal was awarded to the Chinese late 2007, but the project is only now getting under way. Before copper can be hauled from the ground, China must make a substantial investment to build a power-generating station, roads and a railway to move the metal.

Yeager and Larry Snee, a former U.S. Geological Survey official who also has worked in Afghanistan, contend that MCC probably will steer most of the jobs to Chinese workers.

"Of course, the Afghans are going to benefit," Snee said. "But will they get all they deserve?"

China needs huge quantities of raw materials to feed its rapid economic growth and energy demands. It is well positioned to become the dominant force in Afghanistan's potentially lucrative minerals sector, said Don Ritter, president of the Afghan-American Chamber of Commerce in McLean, Va.

"In what direction do (Afghanistan's) mines and minerals develop?" Ritter said. "Do they go the Eastern model, where everything is done behind a closed door? Or, is there an open, transparent competition, where the money is laid on the table without undue influence?"

Yeager has distributed a 78-page report on the Aynak contract in which he contends that M. Ibrahim Adel, Afghanistan's minister of mines, and his associates shut out legal, financial and technical experts who could have helped them on the decision.

Yeager doesn't accuse Adel or anyone else from benefiting personally by awarding the work to MCC. But the final decision, Yeager says, was dictated by bureaucrats concerned with dollar amounts and personal preferences.

One of the losing competitors for the contract was Hunter Dickinson, a global mining company based in Vancouver, Canada. Robert Schafer, Hunter Dickinson's chief of business development, said an Afghan official told him that its bid had been shown to the Chinese while the proposals were being evaluated.

Schafer said he "wasn't surprised at all" to learn that MCC won.

Wang Baodong, a spokesman for the Chinese Embassy in Washington, did not address the allegations. He said China is committed to pursuing economic, trade and investment projects in Afghanistan that benefit both countries.

China has contributed little to improving security in Afghanistan, yet with the Aynak deal, stands to gain from the sacrifices made by the U.S. and NATO in troops and money.

"The world isn't fair," said Robert Kaplan, a senior fellow at the Center for a New American Security in Washington. "A worse outcome to staying and helping the Chinese would be withdrawing and losing a great battle in the war against radical Islam."







http://news.yahoo.com/s/ap/20091031/ap_on_bi_ge/us_afghanistan_copper_mine

jbour13
10-31-2009, 21:29
This scares me a bit, but for good reason.

China is attempting to corner all metals markets and has done good to drive the price of copper, tin and other metals. Not suprising to see that the increase of brass prices and then the prices of ammo and ammo reloading supplies go up with it.

China also does not hire local nationals for nearly anything. As soon as a worker is kidnapped, you can expect a pretty nasty response.

If they hire locals, I'll be amazed. That may have been a stipulation and the Afghan government may have asked for it.

Look at projects of companies like MCC in African countries and tell me how much they've done to help out. The article points out PK and is spot on.

Money is money, some people have more than enough, but will take even more to get it.

nmap
10-31-2009, 22:42
Actually, I think it's part of a larger pattern that should concern us.

China is putting together a package of natural resources around the world. They're investing for future growth, and preparing for even stronger industry.

And what are we doing? Spending rather wildly, it seems to me.

Can we maintain our status as the primary military power in the world as we sink in an ocean of debt? It seems hard to imagine such an outcome. And what happens to the balance of power as China gets stronger and we get weaker?

Triman19
10-31-2009, 22:55
nmap and jbour13 I completly agree. One question though, why wouldn't China want to hire locals? It would directly aid in the local economy and would silence naysayers, right? (I don't consider myslef to be naive) Is it woring to say that the US will still benefit from China's aquistion of the metal market, since the US and Chinese trade and benefit directly? Just a thought. Have a good weekend.

jbour13
11-01-2009, 00:37
nmap and jbour13 I completly agree. One question though, why wouldn't China want to hire locals? It would directly aid in the local economy and would silence naysayers, right? (I don't consider myslef to be naive) Is it woring to say that the US will still benefit from China's aquistion of the metal market, since the US and Chinese trade and benefit directly? Just a thought. Have a good weekend.

It's a matter of trust, of which China has very little. Keep in mind this is the country that closed itself off to outsiders and demanded that emissaries or representatives of foreign governments recognize that the Chinese emperor was higher and to be respected more over their own government heads.

As far as marketing, we are now in this generations "mutually assured destruction" between 2 countries. We need them, they need us. Scariest of all is if China could manage to market it's product base to it's people.

It used to be the cold war, now it's newer and involves an Asian state, a very large and increasingly global state as nmap described.

China does not ever deal well with terrorism. How many acts of terrorism do you hear about? Good control measures of the media, or an understanding from the terrorists POV that they will not succeed without extreme secondary effect.

JJ_BPK
11-01-2009, 04:31
Actually, I think it's part of a larger pattern that should concern us.

China is putting together a package of natural resources around the world. They're investing for future growth, and preparing for even stronger industry.

And what are we doing? Spending rather wildly, it seems to me.

Can we maintain our status as the primary military power in the world as we sink in an ocean of debt? It seems hard to imagine such an outcome. And what happens to the balance of power as China gets stronger and we get weaker?

I agree in part,,

But 1st,, Remember Copper is a World commodity and as such is not really owned by anyone. It flows from the source to the consumer via many middle processes and hands.

Much like oil, someone can own a very big chunk and not be the "owner". Yes the oil cartels think they can control the price of oil, but they also own the results. They are in a slave/owner relationship. A couple yrs ago they thought they could ask 200 USD a barrel, currently they don't know what to ask,, and they know they can't eat the Shiite..

The other end of copper mining is the mess it makes of the local environment. It's a very dirty process, leaving behind a very scared landscape.

Besides Copper, there are various other metals from in the same dirt. There will be Mercury, Gold, & Silver. The process of separating is also chemically very dirty.

Additionally, any local involvement with mining get involved with unions. If you have watched the copper mining in South America in the last 10 yrs, the price of copper has bounced like a Yo-Yo because of Chavez, unstable left wing governments and UNIONS..

SO,,, On a World Health environmental level,, union workers level, political level,, Let China deal with the problems.

Worried about where the profit goes,,

Invest in CMM,,, Maybe not... :cool::D:cool:


Article: China : Metallurgical Corp to raise $5.3 billion in Shanghai and Hong Kong, TendersInfo, September 9, 2009, Al Bawaba (Middle East) Ltd.

Investors wishing to get a head start on China Metallurgical Corporation's IPO can buy between 1,000 and 2 million shares of the company today, according to a statement filed with the Shanghai Stock Exchange (SSE).

The metallurgical and infrastructure construction powerhouse's IPO, to be launched at the end of the month, is expected to be the second largest offering of the year on the Chinese markets.

Its issuance price will range from 5 yuan ($0.73) to 5.42 yuan ($0.79) with a price-to-earnings ratio of 20.63 to 22.36, according to Chinese accounting standards, another statement filed with Shanghai's stock exchange said ...



Article: METALLURGICAL CORP. EXPECTED TO MAKE DIM DEBUT IN HONG KONG,
AsiaInfo Services, September 24, 2009

HONG KONG, Sep 24, 2009 (SinoCast Daily Business Beat via COMTEX) -- Metallurgical Corporation of China Ltd. (SHSE: 601618 and SEHK: 1618) is likely to stage a dissatisfactory performance after getting listed on the Stock Exchange of Hong Kong (SEHK) on September 24, predicted analysts on September 23.

The dual-listed metallurgical company fell below its Hong Kong initial public offering (IPO) price in the grey market trading on September 23, dragged by a consecutive decline of its renminbi-denominated A shares and a worse-than-expected debut performance of Sinopharm Group (SEHK: 1099).

Metallurgical ...


I might buy at .50 USD @ share,, see what happens in 18 months. Might be 1K$ well spent,, maybe not??? :mad:

My $00.0002

Triman19
11-01-2009, 15:10
China does not ever deal well with terrorism. How many acts of terrorism do you hear about? Good control measures of the media, or an understanding from the terrorists POV that they will not succeed without extreme secondary effect.[/QUOTE]

Thanks for clarifying some of that for me. I am actually taking a class this quarter on "World Terrorism and the effects thereafter.." Would you mind to shed some light on your statement regarding terrorist attacks in China without extreme secondary effects? I would like to bring more to our open table discussions each week as I am the only Vet in this class of almost 110 people.
The majority of the discussions are so limited becuase these students really are kids being just 18 and 19 years of age. They have not joined the service, lived abroad or really began to live life yet, and buy no fault of their own. I think at times I get a look from my professor to add more to the topics. However, just because I am military does not mean that I know it all...or even alot at times. If I don't have an intelligent factual statment to add I just shut up. So I would like to learn more.
I am double majoring in Arabic and International Intelligence and Security if that helps you out.

Thank you.