Chinese ambassador to Iceland visits aurora observatory site

Zhang Weidong 张卫东, China’s ambassador to Iceland, visited the site of the aurora observatory under construction in Reykjadalur, near Akureyri, during a tour of northern Iceland last week, according to China’s Ministry of Foreign Affairs. The aurora observatory is a joint Chinese-Icelandic project being built in a farm called Kárhóll, where land was secured in 2013 by a foundation that featured Reinhard Reynisson, who as mayor of Húsavík had proposed to use crocodiles for waste disposal, and Halldór Jóhannsson, at the time Huang Nubo’s Icelandic spokesman.

On the Chinese side, the project is led by the PRIC, the Polar Research Institute of China (中国极地研究中心). It’s still ‘under construction’, despite announcements that it would be ready by October last year.

Advertisements

Chinese trade park opening in former US base – or is it?

Ásbrú, an enterprise park built on part of a former US Navy base in southwest Iceland, is being claimed to host a Chinese trade centre, called Iceland Free Trade Park (冰岛自由贸易园). A search for interested Chinese companies has been going on since last year and, according to a calendar on the Park’s own website, a series of gift product exhibitions should have already started last week, but a lack of announcements anywhere else suggests the project isn’t quite following that timetable. The company that manages Ásbrú signed an MOU in early 2014 on the construction of such a space for Chinese businesses, but it’s unclear if the project has gone any further than that, despite a self-description that presents the Chinese trade park as already ‘established’.

Ásbrú (also known in Old Norse as Bifrǫst or Bilrǫst) was a rainbow bridge between heaven and earth in Norse mythology. The Chinese trade park’s motto is ‘a springboard (跳板) into the EU market’. Although the metaphor seemingly hasn’t proved enticing enough for Chinese investors to come the way of the Æsir, the idea behind it is that Iceland can serve as a platform to export into the European market via its free-trade agreements with both China and the EU.

The most visible figure behind the Chinese trade park is Zheng Zaiwang 郑在望 (Frank Zheng). Zheng leads a group of companies offering high-end leisure and business travel services to Chinese customers, controlled through the HK-registered Luxe China Investment Ltd (至尊中国投资有限公司). One of these companies has been importing Iceland Spring mineral water to China for several years, and since 2013 owns a stake in the producer in Iceland itself.

Iceland Spring isn’t terribly popular in China; Zheng said in ’13 he hoped the FTA would allow for more competitive prices. The liquid’s marketability is surely helped by a very lucky pH of 8.88. Icelandic Glacial, a competitor with a pH of just 8.4, has managed to make inroads in Taiwan.

Zheng first came to Iceland in the 90’s to work as a coach at sports club Gerpla in Kópavogur and later signed up to study Icelandic at the University of Iceland. Later, he turned to organising business trips to China for Icelandic businesspeople, an activity a 1994 article in (now defunct) magazine Eintak portrayed as a tad murky: he didn’t appear to have a business permit, and a former client accused Zheng of essentially cheating him out of his Chinese business deals.

Colourful though those early days might have been, Zheng seemed to be in good standing with the Icelandic authorities in 2009, when Zheng’s luxury travel and mineral water companies ‘co-organised‘ the opening ceremony of the Icelandic Consulate in Shanghai. Zheng got to talk at the event and took the opportunity to promote Icelandic water and invite everyone to travel there.

Zheng’s business was again an official sponsor of the Icelandic pavilion at the Shanghai Expo in 2010. He was also at the official banquet when premier Wen Jiabao visited Iceland in 2012. He interacted with both Wen and Jóhanna Sigurðardóttir and was photographed with both.

A hat tip to Hjálmar Friðriksson of Stundin, who pointed me to the existence of the trade park project and kindly shared other information.

General Nice buys into Canadian oil

General Nice (俊安集团), owners of the Isua iron ore project in Greenland, have acquired a 30% stake in a small Alberta oil company through their HK-listed arm, Loudong General Nice Resources (楼东俊安). The operaton cost Loudong General Nice, where General Nice and related parties are shareholders, some $65m in consideration shares.

The Calgary-based target of the acquisition, Rockeast Energy, has a few oil licences in Alberta. The company was, already before General Nice’s entry, at least partially Chinese-run and owned. Rongshi United Investment Management (嵘世联合) aka Runiworld have a stake in Rockeast, and some sort of ‘alliance‘ has existed between Rockeast and Zhefu 浙富 Holding Group. Zhefu, chaired by Sun Yi 孙毅, primarily make hydropower equipment, but they have an interest in Canadian oil since the purchase of a number of oil fields from Zargon. As of last year, Zhefu’s Canadian subsidiary, Ascensun Oil and Gas, shared an address with Rockeast. It’s unclear who did General Nice buy the stake from, since the transaction was made through a series of BVI companies.

Loudong General Nice Resources, the HK-listed company that has bought Rockeast, is partially owned by General Nice Group (I’ve written about other shareholders here). The Isua licence in Greenland is not owned through Loudong General Nice, but through a Jersey-based of another, non-listed, company of the group. I have a whole series of posts and a background article on General Nice.

A bit as in the case of the Greenland mine and other recent acquisitions, this latest move can be seen as part of General Nice’s effort to diversify away from its historical core business, Shanxi coal, by buying cheap overseas assets.

Meanwhile in Australia, Pluton Resources, partially owned by General Nice, has halted operations at the Cockatoo Island mine amid a dispute with the Western Australian government over unpaid royalties.

China goes into Russian rare earths

A Rostec subsidiary is in talks with Chinese partners to extract rare earth elements in Russia with Chinese technology. Rostec, together with Aleksandr Nesis’ ICT and other investors, own TriArk Mining, with rights over two major sources of rare earth elements: Th+REE monazite concentrate stocked in Krasnoufimsk near Yekaterinburg since the ’40s, and large REE deposits in Tomtor, in the Far Eastern region of Yakutia.

Chinese companies have shown a degree of interest in new REE deposits abroad (cf. China Nonferrous at the Kvanefjeld mine in Greenland, potentially Minmetals in Greece).