President Gloria Macapagal-Arroyo today witnessed the signing of a joint venture agreement between a local subsidiary and two Chinese companies for the setting up of an iron ore processing plant in Panganiban, Camarines Norte.

The joint venture, that calls for the infusion of $30 million into the local economy, was one of the five private sector agreements signed during the last day of the President’s three-day state visit to China.

The signing of the agreements, which was also witnessed by Trade and Industry Secretary Cesar Purisima, was held at the Kerry Centre Hotel here.

The joint venture is between the Konka-Fulim Mining & Development Corporation and Echeng Iron and Steel Group Co., Ltd. and Shenzhen Zhaoheng Industrial Co., Ltd., two of China’s leading corporations.

Howard A. Ko, president of Konka-Fulim Mining, who signed the agreement for his firm, said that the investment is expected to generate some 2,000 new jobs. Officials of the two Chinese companies signed on behalf of their companies.

Operations of the new iron ore facility are slated to start during the first quarter of next year, Ko said.

Konka Fulim Mining, a subsidiary of Konka Group, has interests in motorcycle, electronics, food business, real estate, and other business activities.

On Wednesday, the President also witnessed the signing of a three-year joint pre-exploration study on the potentials of petroleum resources in some parts of the South China Sea where the Philippines and China have overlapping territorial claims.

The agreement, which is a confidence-building measure, calls for a joint marine seismic undertaking of the area by the Philippine National Oil Co. (PNOC) and China National Offshore Oil Corp. (CNOOC). Four other government-to-government agreements were also signed Wednesday.

The other business agreements signed today were for the following:

· $312 million integrated glass manufacturing facility at the Subic Bay Freeport;

· $25 million credit line facility for pharmaceutical and hospital products;

· contract of purchase for 100 Chinese-made buses using compressed natural gas (CNG) as fuel valued at $18 million;

· establishment of a corn research station and cooperation in the trial planting in the Philippines of Chinese hybrid corn; and

· $100 million for telecommunications equipment.