With a population of 900 million and untouched natural resources, the continent of Africa has enormous economic potential. In a fast developing world hungry for resources many countries, around the globe, have their eyes on Africa, all keen to promote business connections. China is no exception and Chinese companies have provided a much-needed economic boost and employment opportunities for many African countries in the recent past.

One of these Chinese companies is the Jinchuan Group Ltd. (JNMC), which operates a branch in Johannesburg, South Africa, trading under the name Jin Chuan Resources Ltd. JNMC is a large nonferrous metallurgical and chemical engineering enterprise based in China's Gansu Province. It produces nickel, copper, cobalt, rare and precious metals, chemical products and processed nonferrous metal products. Its output of nickel and platinum group metals accounts for more than 90 percent of the total in China.

Shared interests underground

JNMC owns nickel reserves of 5.5 million tons, the third biggest in the world. It also has the second biggest copper reserves in China with 3.43 million tons. In recent years, JNMC has conducted several successful purchases in Australia and Africa, including one with South African mining company Wesizwe Platinum Ltd.

In May 2010, JNMC, the China-Africa Development Fund and Wesizwe signed an agreement, in which JNMC would buy 45 percent of Wesizwe's total shares for $227 million. The China Development Bank also promised to invest $650 million in Wesizwe for mineral product exploration. One year later, the purchase deal was completed and JNMC became the biggest shareholder of Wesizwe.

JNMC and Wesizwe focus more on environmental protection and highly processed mineral products. The Chinese Government has set strict regulations on overseas investment, banning all projects that might cause environmental problems.

Before the Wesizwe purchase, Zhang Qiyin, General Manager of Jin Chuan Resources Ltd. and Executive Director of the Wesizwe Platinum Ltd., had only two Chinese staff members in JNMC's South African branch. Now most of his employees are locals. JNMC has kept all former Wesizewe employees except four leading positions for JNMC officials. And Zhang plans to recruit more local employees for the company.

He said once Wesizwe starts mining, it will create at least 3,200 jobs for local residents. Unemployment remains a pressing challenge for South Africa. In 2010, the country's unemployment rate for black youths was as high as 39 percent. "Our investment benefits local people as we provide more job opportunities for them," he said.

Wesizwe has signed an employment commitment and social and labor plan with the South African Government to create more jobs. "We are trying our best to shoulder social responsibility here. And we hope to set a good example for all Chinese enterprises in Africa," he said.