Presentation: Investment by z9Mpzd


									Presentation: Investment
 Presentation: LNG and Mining
with Commissioners
 with Commissioners
Ken Smith                       Europe
 Zijian Zhang                    China
Tak Adachi                      Japan
 Chris Rodwell                   Americas
Export Business Club 2011

                        Zijian Zhang, Commissioner
           Trade and Investment Queensland - China
                                          19 Oct 2011
 •   China Economic Scan
 •   Energy and Mining Opportunities
 •   Challenges
 •   Trade and Investment Queensland -
  China Economic Scan

• World’s second largest economy,
  GDP per head is low                  China’s Position in the World Economy

• A growing middle class: around 500
  million people by 2011, but
  environment and living condition
  need to improve

• Australia’s largest trade partner,
  trade over $100 billion last year

                                                         Source: the World Bank
Future Trends of Major Economies

   •   China Economy Overview
   •   Energy and Mining Opportunities
   •   Challenges
   •   Trade and Investment Queensland -
Emerging Energy Industries

Chinese Government has committed to investing
RMB 5 trillion (A$850 billion) to develop emerging
energy industries for 2011-2020 including:
• Nuclear power, solar, wind, bio fuel
• Clean coal, smart grid, LNG, alternative fuel for vehicles
• Targeting specific projects including solar city, LNG,
  smart grid, low emission and pilot projects;
China’s Energy Trends 2010-2015
  The majority of China’s energy (approx. 90%) comes from carbon-
      intensive fossil fuel such as coal, crude oil, and natural gas
 70%                      China’s Estimated Energy Consumption

                      20% 18%

                                             7% 9%                4%
                                                                                1% 2%       1% 2%

     Coal                   Oil                    Hydro          Natural Gas   Nuclear   Wind/Solar/Bio

                                                           2010    2015
 Source: Compiled government data, APCO analysis
China’s Energy Sources
                                        Cleaner Conventional Energy
                           Coal                                                       Natural Gas

 2015 Targets:                                                              2015 Targets:
 • Portion of energy mix 70% to 63%                                         • Portion of energy mix 4% to 8%
 • Grow consumption 320                                                     • 170 billion m3 production
  (47% of world) to 380mt                                                   • 90 billion m3 imports

 Opportunities:                                                             Opportunities:
 • “Clean coal” solutions                                                   • Pipeline networks
 • Coal imports                                                             • CBM, CMM, shale gas

 Source: “China’s 12th Five-Year Plan: Implications for Greentech”, March 2011
 China’s Overseas Investment

Australia has profited greatly from China’s demand for natural resources. Chinese
OFDI to Australia jumped from USD 6.7 billion in 2007-2008 to USD 19.9 billion in
2008-2009 – making China the largest foreign investor in Australia’s mining sector –
and 98.7% of Chinese OFDI to Australia in this period was directed at mineral
exploration and development.
Case Studies
• Coal
  – Yanzhou Coal Mining Co. seeking more acquisition
    targets in Australia
  – Shenhua wins 40% stake of coal project in
    Mongolia’s Tavan Tolgoi coalfield
  – China Qinfa Group acquired 13.4 million share in
    Tiaro Coal projects in Queensland
  – Guangdong Rising Assets Management (GRAM)
    committed approx. AUD450 million investment to
    Caledon Resources most recently
Case Studies (cont.)

 • Energy
   – CNOOC’s gas exploration and drilling projects
     with Exoma Energy in Queensland
   – PetroChina’s 50/50 JV subsdiary, CS CSG
     (Australia) Pty Ltd entered into an agreement with
     Arrow Energy for the proposed AUD3.44 billion
   – Sinopec signed a binding agreement with APLNG
     in April 2011 for the supply of 4.3mtpa of LNG for
     20 years

   •   China Economy Overview
   •   Energy and Mining Opportunities
   •   Challenges
   •   Trade and Investment Queensland -
Political Challenges for the Next Ten Years

     income disparities                                           36%

             corruption                       24%

        unsound social
       security program

     ethnic conflict and
       separationism       13%

     cool-down of China

      sky-high property    11%

                             Source: Global Public Sentiment Research Centre
China has large levels of wealth discrepancies

                                 Wealth concentration
                                 has largely been in
                                 Eastern China but
                                 Central & Western
                                 China Emerging as
                                 new engines for

                                 While there is a huge
                                 migration to urban
                                 areas, the majority of
                                 China’s population
                                 continue to live in
                                 poverty, especially in
                                 rural areas.

                                      Source: Austrade Shanghai

   •   China Economy Overview
   •   Energy and Mining Opportunities
   •   Challenges
   •   Trade and Investment Queensland -
   Major Achievements 2010-11
• Achieved a total of export A$81.11 million, investment A$132
  million, 40 structured business capacity building programs and
  activities, 577 individual participants in structured business
  capacity building programs and activities.
• Successful operation of Shanghai World Expo Program for 6
• Assistance for key investment and trade initiatives, ie. GRAM,
  CISMEF, Green Building mission, HEAT mission.
• Delivered successful ministerial, business & outbound
  missions including Premier, Treasurer and other ministerial
  New Initiatives

• Target new investment opportunities for Tourism
  Development and Agribusiness;
• Facilitate new market approach for Queensland businesses:
  Clean Tech, Infrastructure, Education and Training;
• Strengthen business network in the west regions of China
Our Services

• Market research and market intelligence to identify
  business opportunities
• Market entry advice
• Project facilitation
• Extensive business networks
• Value of Government assistance in China
 Contact Details

• In-market assistance and           • Initial enquiries about China,
  support in China                     Hong Kong, Taiwan, and
  Zhang, Zijian                        Mongolia
  Trade and Investment Queensland      Geoff Goh
  - China                              Business Manager - East Asia
  Room 3709/10, CITIC Square            Level 19, 111 George Street Brisbane
  1168 Nanjing Road (West)              Tel: 07 3224 5615
  Shanghai 200041 China                 Fax: 07 3835 1002
  Tel: +86 21 5292 9090                 Email:
  Fax: +86 21 5292 9092

Trade and Investment Queensland China working together
with you

              Thank You

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