DATE=8/23/2000
TYPE=CORRESPONDENT REPORT
TITLE=U-S NORTH KOREA JOINT VENTURE (L-O)
NUMBER=2-265761
BYLINE=ALISHA RYU
DATELINE=HONG KONG
CONTENT=
VOICED AT:
INTRO: A small U-S based mining firm says it has
become the first American company to conclude a
business deal in communist North Korea. VOA's Alisha
Ryu has details of this landmark agreement.
TEXT: Officials at Aurora Partners mining company say
they have entered into an agreement to form a joint
venture with a North Korean group to mine, process and
export magnesia products from the North.
Aurora is expected to provide funds, technology and
marketing expertise while its North Korean partner
focus on the mining and processing of the white
compound, commonly used in rubber manufacturing and in
medicine.
Until recently, the U-S government had barred American
companies from doing business in North Korea - a law
that had been in effect since the early days of the
Korean War 50 years ago. But Washington lifted the
embargo in June as a reward for a North Korean freeze
on long-range missile tests.
North Korea used to be the world's second largest
producer of magnesia after China with an estimated
capacity of about 1 million metric tons a year. But
production is believed to have declined in recent
years due to North Korea's long economic isolation
from the international community.
It is not known how much Aurora Partners intend to
invest in the project. The deal, however, is likely
to be closely watched by other U-S companies waiting
to strike their own deals with the formerly reclusive
state.
/// REST OPT ///
On Tuesday, South Korean President Kim Dae-jung urged
his economic ministers to speed up inter-Korean
cooperation agreements that could facilitate South
Korean and foreign investments in the North.
Mr. Kim said recovery of the North Korean economy is
essential to easing military tension on the Korean
peninsula and in reducing the South's burden in the
event of reunification. (Signed)
NEB/HK/AR/JO
23-Aug-2000 03:19 AM LOC (23-Aug-2000 0719 UTC)
NNNN
Source: Voice of America
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