Commercial Signings Create Canadian Jobs, Growth and Prosperity
International Trade Minister Peter Van Loan and Natural Resources Minister Christian Paradis welcome signing of 11 commercial agreements between Canadian and Chinese companies
(No. 203 - June 25, 2010 - 1:15 p.m. ET) The Honourable Peter Van Loan, Minister of International Trade, and the Honourable Christian Paradis, Minister of Natural Resources, together with Chen Deming, Chinese Minister of Commerce, and Zhang Ping, Chair of the Chinese National Development and Reform Commission, yesterday welcomed the signing of 11 contracts and agreements between Canadian and Chinese companies.
The signing ceremony was hosted by the Canada-China Business Council immediately before the state dinner where Prime Minister Stephen Harper hosted China’s President, Hu Jintao.
“President Hu and Prime Minister Harper have agreed that deepening our economic partnership will be a top priority for our countries in the years ahead,” said Minister Van Loan. “We’ve taken yet another important step in this direction with the signing of new agreements between Canadian and Chinese firms.”
“I am pleased to note that the Canada-China relationship on energy and natural resources is deepening, with important commercial agreements being signed,” said Minister Paradis. “We have a solid basis for cooperation in developing clean energy technologies, advancing cleaner energy sources, such as natural gas, and increasing energy security.”
“The world has taken notice of Canada’s enduring financial strengths and economic advantages,” said Minister Van Loan. “During the G-8 and G-20 meetings, our government will continue to highlight Canada as the best place to do business.”
- 30 -
A backgrounder on the commercial agreements follows.
For further information, media representatives may contact:
Office of the Honourable Peter Van Loan
Minister of International Trade
Trade Media Relations Office
Foreign Affairs and International Trade Canada
Natural Resources Canada
Backgrounder - Information on Commercial Signings
Sinopec’s acquisition of an interest in Syncrude Canada
On April 12, 2010, Sinopec (China Petroleum and Chemical Corporation), announced a deal to acquire U.S. ConocoPhillips’ stake in the Syncrude Project. Yesterday, Sinopec and ConocoPhillips Canada signed an assignment of partnership interest agreement that conveys ConocoPhillips Canada’s interests in the Syncrude joint venture to Sinopec subsidiaries. This deal represents the largest Chinese investment in the Canadian oil sands to date.
Syncrude Canada Ltd., one of the largest oil companies in Canada, is a privately held joint venture undertaking among Canadian Oil Sands Limited, Imperial Oil, Suncor, Nexen, Mocal Energy, Murphy Oil and ConocoPhillips. Syncrude lays claim to an estimated 5 billion barrels of proven and probable reserves, and is one of the world’s largest producers of synthetic crude oil, with current production of about 350,000 barrels per day (bpd) and plans to increase that amount to 500,000 bpd post-2015.
Framework agreement on strategic cooperation in uranium
Cameco Corp. and China Guangdong Nuclear Power Holding Co., Ltd. (CGNPC) signed a non-binding framework agreement committing the companies to negotiate long-term uranium purchase agreements and potential joint development of uranium resources. Saskatoon-based Cameco is one of the world’s largest uranium producers. CGNPC is focused on development, construction and operation of nuclear power plants in China. The company currently operates two nuclear power stations with nearly 4,000 megawatts (MW) of installed generating capacity and has 13 nuclear power units under construction with 24,000 MW of installed capacity. The company also operates conventional generation facilities and is involved in development of solar, wind and hydro technology.
Framework agreement for investment in unconventional natural gas projects
Encana Corporation and China National Petroleum Corporation have entered into a framework agreement for potential investment in unconventional natural gas projects in western Canada. Encana would be the joint venture operator of these natural gas developments in northeast British Columbia.
Agreement on provision of loans to the CDMA network project between Export-Import Bank of China and Public Mobile Inc.
Public Mobile Inc. signed a contract with ZTE Corp. of China to buy wireless network equipment. Through ZTE, the Canadian company is negotiating a financing deal with the Export-Import Bank of China for this purchase.
Selwyn Resources Ltd. and Yunnan Chihong Zinc & Germanium Co., Ltd. joint venture and shareholders agreements
The joint venture agreement provides for Yunnan Chihong Zinc & Germanium Co., Ltd. (Chihong) to acquire a 50-percent joint venture interest in the Selwyn Project, a large undeveloped zinc and lead project in the Yukon. The transaction also includes joint financing of the project with Chinese banks. This joint venture would result in the creation of a British Columbia-incorporated company that would conduct a feasibility study of the mine.
MOU on cooperation in potash mines
Hatch Ltd. and Zhongchuan International Mining Holding Ltd. have signed a memorandum of understanding (MOU) on cooperation in potash mines.
Agreements signed earlier
China Energy Conservation and Environmental Protection Group and Plasco Energy Group Ltd. joint venture
China Energy Conservation and Environmental Protection Group (CECEP) and Plasco Energy Group Inc. signed an agreement to establish a joint venture corporation, CECEP-Plasco China Corp., to be based in China and jointly owned by the two companies. Plasco agreed that it will deliver the Plasco Conversion System (PCS) in China through the joint venture only. CECEP agreed that CECEP and its subsidiaries will use only the Plasco PCS for the development in China of projects to recover energy from waste. China currently landfills more than 160 million tonnes of municipal solid waste per year, and that amount is growing due to the urbanization and rapid economic development of the country.
Memorandum of understanding for engineering, procurement and construction management services
Jilin Jien Nickel Industry Co., Ltd. will be developing the Nunavik Nickel Project in northern Quebec through its Canadian subsidiary, Canadian Royalties Inc. SNC-Lavalin submitted a proposal to provide engineering, procurement and construction management services to Jilin/Canadian Royalties. Jilin/Canadian Royalties intends to engage SNC-Lavalin to provide its professional services for the Nunavik Nickel Project.
ARISE Technologies Corporation and SKY Solar Canada joint venture
ARISE Technologies Corporation and SKY Solar Canada have announced a joint venture to engineer, procure and install solar projects in Ontario.
Balloch Investment Group Ltd. and Dalian High Tech Venture Capital Management Company Ltd. joint venture
An agreement has been signed between Balloch Investment Group Ltd. and Dalian High Tech Venture Capital Management Company Ltd. to establish a joint venture private equity fund for investments in Dalian City. The focus of the fund is small and medium-sized growth companies in high technology, clean technology, life sciences and advanced manufacturing, with a special focus on ventures that benefit from cross-border opportunities between China and Canada. The investments will benefit from Canadian innovation ingenuity in a wide variety of industries and China’s manufacturing capability.
Co-invested joint venture to manufacture solar power modules in Canada
Enesoon New Energy Inc. (ENE) and Sungrow Power Supply Co., Ltd. have agreed to establish Sungrow Canada, a co-invested joint venture to manufacture solar power modules in Canada. Sungrow will contribute capital, technology and brand name, and ENE will contribute capital, marketing and management expertise. The project will meet domestic content requirements of Ontario’s Green Energy and Green Economy Act, 2009. Manufacture of solar photovoltaic modules and inverters is expected to be fully operational by the end of 2010, creating 130 jobs in Ontario, with 70 more added in 2011. ENE is an Ontario-based solar photovoltaic system integrator and turnkey solution provider for grid-connected solar power stations. Sungrow, located in Hefei, China, is a high-tech enterprise specializing in research development and manufacturing of solar and wind power generating systems. It is the largest inverter manufacturer in China.
- Date Modified: