Chinese Metal Companies to Acquire Overseas Resources
Published By : 14 May 2015 | Published By : QYRESEARCH
The metal companies in China have stepped ahead to acquire overseas resources. This is to lock ore supplies as the country continues massive infrastructure building projects such as skyscrapers, railways, and power grids. Peru poised to be an important player in China’s future copper requirements, is positioned to become the second largest supplier of the metal in the world.
China has acquired mines from Australia to South America, all at discounts in the middle of dropping metal prices. The Chinese companies buys of overseas’ mines are focused on copper, bauxite, and iron ore as per statistics from Ministry of Commerce.
The Chinese investments in mining resources overseas have surged to US$24.8 billion in 2014 which was US$1.8 billion in 2013, exhibiting surge in deals last year as prices of commodities dwindled.
Peru exhibits immense capacity for output growth, as only 4% of the land which is available for mining is in use as of 2014. The country boasts of 10% of the world’s copper reserves, 85 of the world’s lead reserves, 13% of global zinc reserves, and 19% of the global silver reserves.
Of the total mining projects that are in execution in Peru, copper projects account for 60% of it. Chinese companies that own copper projects in Peru which are MMG’s Las Bmbas, Jiangxi Copper’s El Galeno, and Chinalco’s Toromocho.
After production at Las Bambas commences, Peru may replace China and position itself as the second largesse producer of copper in the world.