China is expected to announce a new blueprint for renewable energy development. The new industry plan will update a long-term industry plan released in 2007. Initial targets for wind, hydro-, solar, and biomass power as specified in the older plan will be raised significantly. The youngest renewable energy blueprint, for example, raises the target for wind power for 2020 from 30 million kilowatts to 100 to 150 million kilowatts. While China remains to depend predominantly on coal for its energy consumption, the share of renewable energies is increasing steadily.
China continues its strategic investment plan in foreign mining assets. The youngest deal was sealed between Wuhan Iron and Steel Group, China’s third-largest steel producer, and Western Plains Resources Ltd. (WPG). The two companies will set up a 50-50 joint venture to develop WPG’s Hawks Nest project in Southern Australia. WPG will issue 12.1 million new shares to Wuhan Iron, making the Chinese steel producer its second largest share holder. The joint venture contract grants WPG the driver’s seat in the Australian-Chinese venture and guarantees Wuhan Iron rights to purchase 50 percent of WPG’s share of magnetite iron concentrate production.
New economic indicators in China and India have spurred optimism among Asian stock markets. In India, the manufacturing sector grew for the first time in five months, and the purchasing managers’ index (PMI) rose to 53.3 in April, up from 49.5 a month earlier. China saw similar positive indicators, with its PMI raising to 50.1, up from 44.8 in March. All these numbers indicate an expansion in factory output and spark hope for an early economic recovery of the two Asian nations.
