While perusing some of my e-mails I happened to notice some news about three of our Asian neighbours. Coincidentally all three articles are about resources in one form or another. Firstly Japan, who incidentally is still one of our biggest importers, has just announced a 5.5% increase in the fourth quarter. This has been at the fastest pace in the last 3 years. Imports are up and Japanese companies are expanding their infrastructure into their factories and machinery. I think that Japan is over the worst now and their economy will be improving more as time progresses. And therefore their demand for resources will increase once more which of course will benefit our mining companies and other exporters In Australia. It has also been a day where some Countries have been guaranteeing their future resource supplies for the future, particularly as prices go upwards due to a shortage in supply and an increase in demand. South Korea has guaranteed its future coal supplies by working out a deal with a Russian Mining Project worth $2.1 billion. Coal as you know is one of our major exports. So we are going to have to be more competitive not only in price but also in supply as well. Otherwise our customers will go elsewhere for better deals. Russia as I have said in the past is one of the 4 leading emerging economies along with China, India and Brazil, although Brazil haven't been in the news much lately;but their economy is still developing quite strongly. If you have been following the news lately, you would have noticed in the past couple of months China has been busy buying into Iron Ore and Oil and Gas Companies in various parts of Australia. This has had the effect of guaranteeing their future supplies of raw materials, plus it also keeps prices fixed to a certain extent as owning half of the company would entitle you to the best price possible. I look at this way; China has its own interests at heart and has definitely been buying for selfish reasons not altruistic ones. Admittedly it will be good for unemployment as in the case of new ventures, but China is still feathering its own nest. Here is another example of what China is doing here in Australia and elsewhere. China said on Monday it expected to sign a final agreement on a $US2.2 billion ($A2.82 billion) bauxite mine and alumina refinery project in Queensland by the end of March. The company, the world's second-biggest aluminum producer after US-based Alcoa Inc, already had acquired "preferred developer" status for the Aurukun bauxite deposit. Plans call for it to sign an agreement for a mining rights development license with the Queensland government later this month as well as a land use agreement with the Aborigines in the area, the company said in a statement to the Hong Kong Stock Exchange. The company, best known as Chalco, on Monday reported a 67 per cent jump in net profit in 2006, helped by rising metals prices. Chalco's shares traded in Hong Kong were down 2 per cent to $HK7.83 by midday on Monday. Like other big Chinese metals and mining firms, Chalco has been expanding overseas to meet strong domestic demand. It is also in talks on exploring for bauxite in Guinea and is negotiating a joint venture deal with the Vietnam National Coal Corp. Bauxite is a key material in aluminum used in aircraft, industrial construction and kitchen utensils. Planners say the bauxite project is expected to create thousands of jobs in the Aurukun area, situated on Queensland's Cape York Peninsula.

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