China settles from mines all over the world in a rush to secure resources

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Chinese mining acquisitions abroad have reached its highest level in more than a decade, as companies are racing to secure raw materials that support the global economy in the face of escalating geopolitical tension.

There were 10 deals worth more than $ 100 million in the past year, which is the highest level since 2013, according to the S&P and Mergermarkt data analysis. Separate research conducted by the Griffiths Asia Institute has found that last year was the most active investment and construction of Chinese abroad since at least 2013.

The country’s great demand for raw materials – the largest consumer in the world in most minerals – means that mining companies have a long history of investment abroad. Analysts and investors say that the rise in deals partially reflects China’s efforts to advance the deterioration of the geopolitical climate, which makes it increasingly not welcome as an investor in major countries such as Canada and the United States.

“There has been more activity in the past 12 months because Chinese groups believe that they have this window near the period … they are trying to get a lot of integration and purchases before the geosus is difficult.”

The trend has continued since the beginning of this year. The Chinese Zijin Mining recently said it intends to get a golden mine in Kazakhstan for $ 1.2 billion. Appian Sell ​​it Mining Good green The copper and gold mine in Brazil to the Chinese Baiyin Group for 420 million dollars in April.

“In the next few years, we are likely to continue to see a healthy level of the activity of making deals from Chinese mining companies,” said Richard Hoorox Taylor, the global head of minerals and mining at Standard Chartard.

Christophe Nidobel, an expert in Chinese investment abroad and director of the Griffith Institute, noted that under the Belt and Road Initiative, the foreign policy policy for transport and infrastructure in Xi Jinping was smaller.

In comparison, Chinese investments and resources abroad remained large. This is in line with the China axis towards high -tech manufacturing, including batteries and renewable energy. But it also reflects the fact that investors have become more advanced in their investment and operational approach.

China dominates most important minerals – including rare land, lehium and cobalt – but it must import a lot of raw materials.

The United States and many European countries are trying to reduce their dependence on China on these minerals, which are the key to producing everything from electric vehicle batteries to semiconductor and wind turbines, and developing alternative supply chains.

Adam Web, head of the BENCHMARK MINERAL Intelligence, said that Western countries, including Canada and Australia, were “increasingly cautious” about Chinese investment in local mining assets, given the “strategic nature of many of these minerals”, said Adam Web, head of battery raw materials at Benchmark Mineral Intelligence.

Analysts and bankers indicated that Chinese companies have become innovative in capturing mining assets from Western competitors in recent years, and are often ready to take a long -term view of assessments and investment in the most dangerous judicial states.

“There was a” increasing “development of Chinese integration and purchase strategies for Chinese buyers,” Sherb said.

He said: “The Chinese government used to choose one buyer for each process of selling assets and returning to that group. What has evolved over the past three years to the past four is the government that allows Chinese groups to compete with each other. This means that they were not afraid of losing to the West anymore.”

John Mayer, an analyst at the Corporate Consulting Company, said that China was making deals “to preserve the West actively from some critical materials that dominate it.”

“Every time someone approaches lithium mining, the Chinese come with a check book.”

Chinese mining groups include the most active in external deals CMOC, MMG and Zijin.

It also issued Chinese financial institutions Billions of loans for minerals Mining and processing projects in the developing world.

Timothy Voden, co -chair of the International Arbitration Group at the Lawyer Boyce Schiller Flexer, who works in a number of African countries, said Chinese companies are putting themselves to benefit from resource nationalism in countries such as Mali.

Some military governments in Africa have sought to control Western mining origins and demand an increase in the payments of kings. The lawyer said that Chinese companies are often ready to accept the less profitable arrangement if they can take over the management of the asset.