Chinese companies are racing to secure supplies of raw minerals amid heightened global geopolitical tensions, according to the Financial Times.
In 2024, China will have 10 mineral mine acquisitions worth more than $100 million in other countries, the highest level since 2013, according to S&P analysis and Mergermarket data.
Another study by the Griffith Asia Institute also found that China's investment and construction activities in the overseas mining sector were the strongest last year.
China is the world's largest consumer of most minerals. Its mining companies have a long history of investing abroad.
Experts say China's surge in overseas mine acquisitions partly reflects its efforts to stay ahead of the curve amid volatile geopolitical conditions.
The trend of increasing mergers and acquisitions (M&A) has been maintained since the beginning of this year. Chinese mining company Zijin Mining recently said it plans to buy a gold mine in Kazakhstan for $1.2 billion.
US company Appian sold its Mineracao Vale Verde copper and gold mine in Brazil to Chinese partner Baiyin Nonferrous Group for $420 million in April.
“We are likely to continue to see active acquisition activity by Chinese mining companies over the next few years,” Richard Horrocks-Taylor, global head of metals and mining at Standard Chartered Bank, said in the report.
Chinese companies are racing to secure raw mineral supplies (Photo: iStocks).
Christoph Nedopil, head of the Griffith Asia Institute, said this was consistent with China’s shift toward high-tech manufacturing, including areas such as batteries and renewable energy, but also reflected Chinese investors becoming more strategic in their approach to overseas investments.
China currently dominates the processing of most critical minerals – including rare earths, lithium and cobalt – but must import a lot of raw minerals.
In contrast, the US and many European countries are trying to reduce their dependence on China for the supply of important minerals and develop alternative supply chains.
Western countries are becoming more wary of Chinese investment in their mining sectors due to the strategic nature of many minerals.
Experts note that Chinese companies have become adept at acquiring mining assets from Western rivals in recent years.
China has made acquisitions in the overseas mining sector to actively deny the West access to some of the critical materials where China has a dominant position, said analyst John Meyer of business consultancy SP Angel.
“Every time someone comes close to mining lithium, China makes a quick acquisition,” Mr Meyer told the Financial Times.
The Chinese mining companies most active in overseas acquisitions include CMOC, MMG and Zijin Mining. Chinese financial institutions have also provided billions of dollars in loans for mining and mineral processing projects in developing countries.
Source: https://dantri.com.vn/kinh-doanh/trung-quoc-chi-manh-thau-tom-mo-khoang-san-toan-cau-bac-kinh-toan-tinh-gi-20250708125423651.htm
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