A Chinese state-owed mining group has won the right to develop a copper deposit in Afghanistan after agreeing to invest $3 billion in the project, making it the largest foreign investment in the central Asian nation's history, according to media reports. The deposit is located in Aynak, an area east of the capital Kabul and is estimated to contain up to 13 million tones of copper. Wire reports said China Metallurgical Group will invest $2.9 billion in the project, with construction of the mine expected to take five years. The Chinese company will also pay the Afghan government $400 million a year to operate the mine. In order to bring the mine into operation China Metallurgical Group will need to build transport links and a power station. The Chinese company beat out competing bids by Hunter Dickinson of Canada, U.S.-based Phelps Dodge, London-based Kazakhmys Consortium and Strikeforce, part of the Russian company Basic Element Group. http://www.marketwatch.com/news/sto...FE-F4A0-4080-A69F-0A61AC075947}&dist=hplatest
Yada, yada, yada...........when state-owned companies make commodity-oriented investments in foreign countries, it's bearish for the commodity. Copper is no different.