BAY STREET: Cash rich China eyes Canada's rich resources

* Purchase of Teck stake may only be first of many

* Looking at opportunities amid credit crunch

* Key commodities include coal, copper and uranium (In U.S. dollars unless noted)

By Pav Jordan

TORONTO, July 12 (Reuters) - China's purchase of a C$1.74 billion ($1.5 billion) stake in Teck Resources (TCKb.TO) may be just the opening move from the world's top resource consumer in a strategy to use its unique wealth advantage to become a key source of mining capital for Canadian firms.

Teck said last week it sold a 17.2 percent equity stake to state-owned China Investment Corp in a deal that allows the Canadian miner to pay down its massive debt while expanding China's portfolio of commodity investments.

The deal underscores how deep China's pockets are at a time when many sources of credit and financing have dried up in the global recession, even for the biggest miners.

"Most people thought China would take advantage of this dip in commodity prices and, because they're the only ones with money, take advantage of this financial situation we are in. They have come through big time, be it oil and gas, or any commodity you can think of," David Davidson, an analyst with Paradigm Capital in Toronto, said in an interview after the Teck deal was announced.

Teck is a major producer of copper, metallurgical coal, zinc and gold, all commodities sought by China.

"I think what they are looking for is distressed opportunities ... Companies who have a strong resource base that are suffering because of the lack of liquidity in the market," said Jack Azimi, managing director of Foundation Markets, a small investment firm in Toronto.

Azimi, who works with Chinese groups looking for opportunities in Canada, said the presence of Chinese and Indian firms is growing.

LARGER PRESENCE

Toronto's Prospectors and Developers Association of Canada convention in March was a somber occasion because of volatile metals prices and difficult financing conditions -- except for the Chinese.

"We met with one of the Chinese companies at the PDAC and they made it very clear that they would look at any project in Canada, so long it is of advanced stage," said Azimi.

"They are not interested in exploration. They want near-term production opportunities. They want a sure thing."

China's commodity push is not new.