China re-uses 1960s ocean floor mining ruse

China is reported to have gained Indian Ocean floor mining rights for mineral “nodules”.  The US hid secret plans to retrieve a sunken Cold War Soviet submarine under the false pretext of mining the ocean floor for “nodules”.  Mining of ocean floor nodules is unusual, if not impractical and commercially unviable.

China seeks to assert naval power over most of the South China Sea; and Japanese, Taiwanese, Vietnamese, Philippine, Bruneian, and Malaysian waters; and East Timorese; and beyond into the Indian Ocean.  It is possible that China’s rights to Indian Ocean territory are not for mining purposes.  China needs to secure import channels for mineral imports from Chinese controlled African mining projects. 

-oOo-

For more market commentary join our free live market briefings, or read more, at Options21.com; or follow my colleague Paul Wise's blog.