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.

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Chinese plans for an Arctic research base in Canada?

PRIC (Polar Research Institute of China) director Yang Huigen 杨惠根, channelled by the Globe and Mail, says China might be interested in building a research station in northern Canada. According to other sources quoted by the newspaper, Tuktoyaktuk, a hamlet in the Northwest Territories, a couple hundred kilometres from the Alaskan border, seems to be a location under consideration because of the region’s oil hydrocarbon potential. Channelled by the Global Times, he denies clearly airing such an intention.

Arctic research cooperation between China and Canada was the topic of an event held last week at the Canadian embassy in Beijing. Chinese media reporting on the event (‘Canada welcomes Chinese participation in Arctic cooperation‘) summarises scientific exchanges between the two countries in that domain but makes no mention of plans for a new base. The event was attended by the Canadian ambassador, Guy Saint-Jacques (赵朴), as well as by David Hik, a University of Alberta biologist who sits at the International Arctic Science Committee (IASC) and the Canadian Polar Commission. Mr Hik also visited the PRIC in Shanghai, where he talked about the Canadian High Arctic Research Station (CHARS), expected to open in 2017 in Cambridge Bay, Nunavut. Addressing a public that included Arctic scientists and the freshly appointed Canadian general consul in Shanghai, Claude Demers (邓凯), Hik also referred to climate change, fisheries and clean energy among potential areas for future scientific cooperation between the two countries.

The Globe and Mail quotes Hik as being rather sceptical towards the idea of a Chinese NWT station. Rather than a separate base, a Chinese station would be “co-located directly within the Canadian research facilities”.

China has a research base in the Arctic, the Yellow River Station (黄河站) in Svalbard. There is also the Chinese-Icelandic aurora observatory in Kárhóll, near Akureyri. The observatory has been the object of some mild controversy in the past and perhaps something similar could be expected if plans for a base in Canada take a more concrete form.

We can already imagine what such a controversy could look like. Robert Huebert, a University of Calgary academic with a focus on Arctic security, questioned the wisdom of providing “a state that is that authoritarian” with the ability to “observe within the North”. These remarks, included in the Globe and Mail article, quickly made their way to the Global Times (环球时报), a state-owned nationalist tabloid, where they mutated into an article that refers to Canadian media fears that China ‘covets’ their territory. That’s what the title says; the article body eventually makes clear we’re talking about ‘coveting Canadian soil’ just to plant a research station on it. The article opens with a translation of Huebert’s comments, which is largely word-for-word except that the word ‘authoritarian’ (state) is replaced with its near-synonym ‘such’ (a country).

The Global Times asked Yang if he had talked about plans for a research base in Canada. Yang denied he explicitly referred to such plans.

I’ve written in the past about media debate over various Chinese projects in the Arctic, including nonexistent ones, such as poet-tycoon Huang Nubo’s alleged plans to buy Austre Adventfjord, a large coal-rich property in Svalbard. The Global Times is a reliable echo chamber for talk of various ‘fears’ in the Western press, and for their deconstruction. I’ve had occasion to discuss the paper’s style and editorial habits in a previous post.

new article: a General Nice backgrounder

While no one seems to be expecting to see much actual mining at the Isua project in Greenland any time soon, I thought its new Chinese owner, General Nice (俊安集团), was worth a closer look, since so little has been written about the company. So I’ve put together a ‘backgrounder’ with highlights from my recent, and not so recent, research on General Nice for everyone to enjoy. Admittedly Isua, an asset which, by all accounts, its new owner plans to simply sit on for the time being, isn’t the hottest topic in the grand scheme of things, but I think the story makes up for that medium-to-low hotness with a flashback to the Shanxi coal rush, with its polluted skies and wild bribing, and a showdown with the ousted ruler of Burkina Faso. Go read the whole thing (still being edited but already up) and confound your fellow dinner-party guests with more General Nice trivia than a barrel of General Nice wine can wash down.

China’s elder oilmen buy Canadian minor

Posted on Tumblr on Oct 2.

Yanchang Petroleum has bought Canadian 3k boe/d producer Novus Energy and now plans to keep buying in Canada. Yanchang Petroleum is the HK-listed arm of a conglomerate owned by the government of Shaanxi province (延长石油集团) and which traces its origins to what was possibly the first attempt at oil exploration in China in 1905, initiated by Constantin von Hanneken, a German adviser to Li Hongzhang who turned to the mining industry at the beginning of the century. Canadian takeovers by foreign state-owned companies were to receive increased scrutiny after CNOOC’s purchase of Nexen, but the Novus transaction falls just below the threshold for a government review. Yanchang’s overseas operations include onshore fields in Madagascar it operates since 2010.