An article today titled ‘China’s Sovereign Wealth Fund Makes Big Bet in Canada’ and subtitled ‘Canadian mining and processing company Teck Resources is selling a 17% stake to China Investment Corp.’ for approximately U.S.$1.5 billion summarizes the recently announced Chinese investment in Teck Resources.  Teck is the largest diversified mining, mineral processing and metallurgical company in Canada, principally producing copper, zinc and metallurgical coal from 15 mines located in Canada, the U.S., Chile and Peru.  This Chinese investment is being made pursuant to a primary offering, meaning that the proceeds from the investment will accrue directly to Teck enabling it to pay down debt.  As I have said a number of times in posts on this Blog – watch China continue to make major investments around the world it believes are strategic to its long-term economic goals.  I am particularly watching for resource investments by the Chinese in (alphebetically) Australia, Canada, South America and the Middle East.  I find investments made by the Chinese in Canada to be of interest because, aside from my being a Canadian, they are doing this in the backyard of a principal U.S. trading partner that is geographically tied to the U.S. like two children in a three-legged race.

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