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Overview

China provides 200,000 tons of fertilizer in exchange for rights to North Korea’s abundant natural resources (Linked to Record ID#63008)

Commitments (Constant USD, 2023)$108,080,879
Commitment Year•2011Country of Activity•Democratic People's Republic of KoreaDirect Recipient Country of Incorporation•Democratic People's Republic of KoreaSector•Agriculture, Forestry, FishingFlow Type•Grant

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 15, 2011

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

Government Agencies

  • Unspecified Chinese Government Institution

Receiving agencies

Government Agencies

  • Government of North Korea

Implementing agencies

Government Agencies

  • Government of North Korea

Loan desecription

China provides 200,000 tons of fertilizer in exchange for rights to North Korea’s abundant natural resources (Linked to Record ID#63008)

Narrative

Full Description

Project narrative

During May 2011, when North Korean leader Kim Jong-il visited China, the Chinese Government agreed to provide 200,000 tons of fertilizers free of charge (captured via Record ID#63063) and 500,000 tons of corn at a discounted rate (captured via Record ID#63008) in exchange for rights to North Korea’s natural resources. The estimated monetary value of the fertilizer donation is $95,100,000. The Chinese Government agreed to sell the 500,000 tons of corn for half of the prevailing international price. The estimated monetary value of the corn donation is $77,575,000. In exchange, North Korea reportedly agreed to hand over 50 percent of extracted rare earth minerals free of charge to China, with the rest to be sold to China at international prices.

Staff comments

1. To estimate the monetary value of the fertilizer donation ($95,100,000), AidData takes the international price of a ton of urea fertilizer in August 2011 ($475.50) and multiplies it by 200,000 tons. To estimate the monetary value of the corn donation ($77,575,000), AidData first takes the international price of a ton of maize in August 2011 ($310.30) and multiplies it by 500,000 tons, and then divides this figure by two. 2. North Korea is estimated to have around 20 million tons of rare earth minerals, which are vital in the production of high-tech goods.