Today seems to be the day that China solves many of its commodity and energy problems. First off Sinopec has finally agreed to purchase Addax Petroleum for US$7.2 billion, making it the largest Chinese oil and gas acquisition to date. Addax has assets in Africa and Iraq which would provide a much needed boost to Chinese energy supplies. At the same time, the deal would provide a benefit to Addax shareholders in the form of a 47% premium on the company’s share price on June 5 the last day of trading before it was suspended by the Toronto Stock Exchange. Next we go from oil security to that of iron ore. Beijing yesterday said it found Asia’s largest iron ore deposit in the northeast of the country with a reserve of nearly 3 billion tons. That could be the answer to China’s iron ore import problem. There’s only one snag: The ore is 1,200 meters below the surface meaning the extraction costs might make it too expensive to pursue. But this all could just be for show during the current price negotiations with miners, Rio Tinto, BHP Billiton and Vale as China Metallurgical Mines Association said the start of production could be three to four years away. Speaking of posturing, General Motors (GM) executives met with Beijing Automotive Industry Holding Corp (BAIC) about a second takeover proposal for its Opel unit in Europe. Although GM does not foresee its deal to sell the European car brand to Magna International failing, it nonetheless met with BAIC reportedly because its more detailed acquisition plan "warranted a response."