FT: Malaysia, China to tap resource-rich area of Borneo

Updated On: Jan 12, 2010

The Financial Times reports today that Malaysia and China have signed a deal to build projects in a large, controversial resource corridor in Borneo.

According to Malaysian PM Najib Razak, the agreement could result in projects worth $11 billion. State statistics estimate that the area includes 1.46bn tonnes of coal reserves, just under 41,000bn cu ft of natural gas, and the potential to generate up to 28,000MW of hydro-electric power.

The deal is the latest in a continued series of Chinese diplomacy and business abroad, with the goal of improving relations and securing natural resources. Recently, Beijing was in the news for agreeing with the governments of Central Asian governments to construct ambitious natural gas pipelines.

Link to FT article

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