China snaps up mines around the world in rush to secure resources!
Chinese mining acquisitions overseas have hit their highest level in more than a decade as companies race to secure the raw materials that underpin the global economy in the face of mounting geopolitical tension.
There were 10 deals worth more than $100mn last year, the highest since 2013 according to an analysis of S&P and Mergermarket data. Separate research by the Griffith Asia Institute found that last year was the most active for Chinese overseas mining investment and construction since at least 2013.
The country’s huge demand for raw materials — it is the world’s largest consumer of most minerals — means its mining companies have a long history of investing overseas. Analysts and investors say that the rise in dealmaking partly reflects China’s efforts to get ahead of the deteriorating geopolitical climate, which is making it increasingly unwelcome as an investor in key countries such as Canada and the US.
Michael Scherb, founder of private equity group Appian Capital Advisory, said there had been “more activity in the past 12 months because Chinese groups believe they have this near-term window . . . They’re trying to get a lot of M&A done before geopolitics get difficult.”
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Why aren’t the Chinese buying gold mining companies too!