China eyed to invest $2.5b in solar plant in North Korea: report

In exchange, North Korea will grant China access to a rare earth mine.

Reuters reports that China will invest $2.5b for the construction of a 2.5 million kW solar plant in North Korea, in exchange for access to a rare earth mine in the North Pyongan province, according to a web report by the Association of China Rare Earth Industry.

China is the world’s dominant producer of rare earths, a group of 17 chemical elements prized for their use in consumer electronics and military equipment, but neighboring North Korea is believed to have significant untapped rare earth resources.

The solar energy, meanwhile, could potentially ease North Korea’s chronic power shortages.

However, one Chinese rare earth industry source told Reuters such an agreement was “wishful thinking” on behalf of North Korea and was skeptical about the real level of Chinese interest in the project. “Investing in North Korea is not safe. Its international reputation is poor and many companies will not necessarily be interested,” said the source, who declined to be identified.

The North Korean embassy in Beijing could not immediately be reached for comment, whilst the North Korean consulate in Shenyang, in northeast China, declined to comment.

Here’s more from Reuters.