Tanzanian Royalty Exploration Corporation - Chairman's Corner - Chinese Appetite For Commodities Unlikely to Wane

James E. Sinclair,
Chairman & CEO,
Tanzanian Royalty Exploration Corporation

	August 12, 2009 Chinese Appetite For Commodities Unlikely to Wane
	Dear Friends, China needs mineral commodities to drive economic growth and it will do whatever is necessary to acquire them. Jim Sinclair *China makes unexpected grab for Canadian miner* State-controlled Jilin Jien launches a surprise bid for Canadian Royalties, a stark change in tactics for the Asian superpower ANDY HOFFMAN From Tuesday's Globe and Mail Last updated on Wednesday, Aug. 12, 2009 02:44AM EDT China's insatiable hunger for natural resources has officially turned hostile. State-controlled Jilin Jien Nickel Industry Co. Ltd. launched a surprise $148.5-million unsolicited takeover bid for Canadian Royalties Inc. yesterday, marking one of the first times the Asian economic superpower has gone after foreign resource assets without first winning a friendly agreement with management. China has become an active acquirer of foreign resources amid the global economic crisis, investing in copper, oil and iron ore needed to fuel its fast-growing economy. But despite massive financial resources and a mandate to diversify its $2-trillion (U.S.) in foreign exchange holdings into so-called hard assets such as commodities, most of China's resource deals have been friendly. The hostile offer comes as federal Finance Minister Jim Flaherty is in Beijing on a trade mission to encourage Chinese investment in Canadian companies. "China has a need for resources. China has ... substantial U.S. dollar cash reserves," Mr. Flaherty told reporters yesterday. "China is looking for investments abroad. Commercial investments, subject to proper governance, are welcomed in Canada." more... Dear Friends, I am proud because I have been a part of this progress since the late 1980s. Jim Sinclair Tanzania to Spend $5 Billion on Transport Upgrade (Update1) By Ray Naluyaga Aug. 12 (Bloomberg) - Tanzania will spend $5 billion over the next five years to upgrade its transport system, Infrastructure Development Minister Shukuru Kawambwa said. The project is part of the East African nation's transport investment program, which will run over two five-year phases and will develop roads, ports, railways, airports and ferries, Kawambwa said at a conference in the commercial capital Dar es Salaam today. "It is expected that by 2018, all trunk roads will be paved, thus enabling all regional centers to be linked with paved roads and all district headquarters to be linked with all weather roads," he said. Due to low levels of investment, Tanzania's transport infrastructure is inadequate to cope with growing demand, Kawambwa said. The government can "ill afford" to develop the system alone, and needs to partner with the private investors, he said, without adding more detail. The country is in talks with the Japanese government to secure funds to build flyovers in Dar es Salaam to ease traffic congestion, Prime Minister Mizengo Pinda said on July 27. more...

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