Is China the Next Global Resource Glutton?
Today, mining giant Rio Tinto (RTP) announced a deal with China’s Chinalco “to develop an iron ore reserve in the West African country of Guinea.” This makes sense since Chinese consumers have awoken to the dream of having all the things Westerns possess.
China’s National Energy Administration (NEA) recently reported that China’s electricity consumption in January 2010 grew 40.14 percent year-over-year to 353.1 billion kilowatt-hours (kWhs). That’s the sound of a lot more factories running or residential air conditioners humming.
Moreover,the US Department of Energy offers a glimpse of China’s voracious appetite for oil:
Looking beyond the details, the general theme is China needs more resources, and they need them now. Just like Friday night bank failures in the US, over the years expect to see China cut more deals like the one with Rio Tinto in the background of our busy lives.