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Home / Business / Industries Global investment still active in China's mining industry

Zoom  Zoom Issue Date:2011-11-07   Source: China Daily   Browse:704

TIANJIN - China's investment in the mining industry increased 27.9 percent from a year earlier to 2.6 trillion yuan ($409.9 billion) in the first three quarters this year, showing a steady development as against a slower world economy.

 

China's economy continues to grow in keeping with macro control expectations in a positive direction and the mining industry provides important support for the country's economic and social development, said Wang Min, vice-minister of land and resources.

 

Although the world economy is fraught with many uncertainties, global investment in the mining industry is still active, said Wang Yongsheng, vice-president of China National Development Bank.

 

He said many changes were taking place in the country's economic development and the mining industry.

 

In the first half of 2011, the trade value of 1,379 global mining mergers and acquisition (M&A) reached $ 71 billion, 80 percent year on year, hitting a record high, according to Wang.

 

However, the data from the Ministry of Land and Resources shows that China accounts for a low share in overseas mining M&A, with an 18 percent decrease in the trade value, accounting for $ 4.7 billion.

 

Jia Liangqun, vice-president of Shanghai Ganglian E-Commerce Holdings Co Ltd, said the falling number is a sign of the investment enthusiasm in the mining sector cooling down.

 

He said both the global and Chinese economy will not be worse than it was in 2008. Therefore the steel trade will keep increasing at a moderate level. However, the industry needs to be prepared for a "cold winter" because of the gloomy market scenario.

 

Chinese resource companies have formed large-scale resource reserves abroad through overseas investment, which ensures the country's resources supply, said Zhang Xiaoqiang, deputy director of National Development and Reform Commission.

 

"Our overseas investment helps change those countries' resource advantages into economic benefits and creates job opportunities at the same time," Zhang said. "It accelerates development of resources in those countries and their infrastructure construction."

 

Li Lihui, president of Bank of China, said the bank will enhance cooperation with the players in the mining industry, providing one-stop financing services for the resource companies.

 

He said the bank has provided loans of 500 billion yuan to Chinese companies in the mining industry to support their overseas expansion.

 
 
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