Jun 23, 2010 (Bloomberg) - China North Industries Corp., a Beijing-based engineering and defense company, signed a copper mining contract in Myanmar that it said will strengthen China's strategic reserves of the metal.
The Chinese company, also known as Norinco, made the agreement during a visit to Myanmar by Chinese Premier Wen Jiabao and Norinco Chairman Zhang Guoqing, the company said in a statement dated June 10 posted on its website. Financial terms of the mining contract weren't disclosed.
China, the world's largest metals consumer, this week indicated it will abandon the two-year-old dollar peg of its currency, the yuan. A rising Chinese currency may boost China's purchasing power and increase imports.
Norinco also signed cooperation agreements in Myanmar, the country formerly known as Burma, related to chemical production- line renovations and port, wharf, rail and hydropower projects, according to the statement. Norinco's mine contract was reported earlier by the Wall Street Journal.