Mining firms present sleek face to global sector
Updated: 2007-11-14 07:13
The mining industry is "going global" at a faster pace by specializing in areas such as oil and gas development and mineral extraction, Land and Resources Vice-Minister Wang Min said yesterday.
"Overseas operators from the mining industry are gradually shifting from oil to metals, from mining to exploration and from State-owned enterprises to companies with complex ownership structures," he said.
Wang was speaking at the China Mining 2007 forum in Beijing.
He said mining firms increase revenues for communities and create jobs. Last year, China's mining industry invested $8.54 billion overseas.
China Nonferrous Metal Mining Group has invested $150 million in copper mining in Zambia.
Aluminum Corporation of China, or Chinalco, invested $2.2 billion in a bauxite mine in Australia and bought Peru Copper this year.
And Shenhua Energy, China's largest coal mining company, is planning to acquire mines in Australia and Indonesia.
"Chinese nonferrous metals have had tremendous influence on the world's precious metals market, while increasing the domestic income of the country itself," William Bulmer, head of mining investments at IFC, a member of World Bank Group, said.
The country has also been looking to bring more foreign investment into its mining sector, the minister said.
To date, more than 100 foreign companies have invested in mineral exploration in China, launching more than 400 projects.
And 594 mining firms have been set up using foreign funds or money from Hong Kong, Macao or Taiwan.
Foreign companies offering exploration, consulting and information services have also entered the Chinese market.
The Guidance Catalogue of Industries for Foreign Investment released last week lists those minerals open to exploitation by foreign investors. It also lays out rules for joint ventures, cooperation and Sino-foreign ownership structures.
The vice-minister said the government will continue to facilitate exchanges of information about mineral resources between governments and mining companies.
"Governments should set up a mechanism to promote cooperation between companies and resolve disputes through consultation," he said.
China Mining 2007, which opened yesterday and will run until tomorrow, has attracted nearly 3,000 delegates and 300 exhibitors from 50 countries and regions.
(China Daily 11/14/2007 page3)
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