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Market depth adjustment global mining investment presents a diversified situation

market depth adjustment global mining investment presents a diversified situation

China Construction machinery information

since this year, the international mining investment market has been in a continuous downturn, the price of bulk mineral products has fallen significantly, mining enterprises have generally experienced a decline in profits or even losses, and expansion funds are tight

at the 2014 China International Mining Conference held a few days ago, Zhang Xin'an, the information center of the Ministry of land and resources, pointed out that at present, the deepening adjustment of the global mining structure presents the phased characteristics of the superposition of "the slow recovery period of the market, the gestation period of technological innovation, the period of institutional innovation and game to improve the supporting system of raw and auxiliary materials and the period of exploration business culture integration", indicating that the adjustment of the mining market is coming to an end

the mining investment market is in the adjustment period

mining is a capital intensive industry, which requires a lot of capital operation. Almost all the 83 major mining countries in the world are mining investment countries of China, of which 1/3 of the overseas investment accounts for about 80% of China's total overseas investment

in 2013, Wang Jiahua, executive vice president of the China Mining Federation, said that 80% of Chinese enterprises' overseas mining investment failed. However, in the first three quarters of 2014, China's foreign mining investment showed signs of stabilizing and rebounding, and the total investment doubled year-on-year. At present, after a continuous slowdown, China's mining investment abroad has entered an era of bottom hunting. In the first three quarters, the total overseas mining investment of Chinese enterprises reached US $10.938 billion, an increase of 139.67% year-on-year. Among them, the amount of mergers and acquisitions was US $8.657 billion, an increase of 284.249% year-on-year

in the first three quarters, the reason for the sharp increase in the total overseas mining investment of Chinese enterprises is that, on the one hand, if it is a worm drive, it is mostly because the wear market is depressed, the price of mineral products is low, and some enterprises are involved in bottom hunting. On the one hand, it is because the base in 2013 is relatively low, coupled with accidental factors, that is, Minmetals Group acquired the Las banbas copper mine in Peru in April this year, with an investment of nearly $6billion, more than 50% of the total investment in the first three quarters

it is reported that in recent years, the overseas mining investment of Chinese enterprises has gradually shifted from equity investment to risk exploration. Although the exploration stage is risky, long-term and the success rate is not high, the number of exploration projects has increased year by year. The main reasons are as follows: first, some enterprises investing in overseas mature mines have increased their investment several times due to problems such as the decline of mineral prices, and there are many difficulties, which is a wake-up call for domestic enterprises. Second, the acquisition of mature projects requires a large amount of funds. Geological prospecting units often have weak financial strength, but have a large number of geological experts and equipment as their advantages. Third, once the risk exploration is successful, find valuable minerals, and then raise funds through the capital market or financing loans, or attract investors to join the project to recover costs

in fact, in 2013, cross industry enterprises replaced mining enterprises as the main source of overseas mining investment, while in 2014, mining enterprises became the main source of investment. Among them, the investment of state-owned enterprises has again exceeded that of private enterprises, the mergers and acquisitions of mining enterprises have rebounded, and the projects invested and developed by some enterprises have achieved normal production and profits

Chang Xingguo, deputy director of the international and geological and mineral Finance Project Department of the China Mining Federation, believes that the current is a period of in-depth adjustment of the mining investment market. Although the price of mineral products has been declining in 2014, it will not decline as much as last year. It has entered the bottom building stage, and international experienced enterprises have already made bottom raids at this time. In the next year or two, China's overseas mining investment market will be in the window period of adjustment and bottom seeking investment

the global mining investment environment is different

affected by the economic situation, the global mining development momentum slows down, the scale of mineral products trade and mining investment shrinks, and the mining investment environment changes accordingly. It is necessary to update the global mining investment environment evaluation in time. In the 2014 global mining investment environment assessment project, the information center of the Ministry of land and resources divided the global mining investment environment into five stars. The higher the star level, the better the mining investment environment of the country

among them, the mining investment environment is five-star, which represents the huge resource potential of the country. The basic implementation of national treatment for foreign mining investment has a stable political situation, low legal risks, perfect public facilities, low costs, and good income expectations. These include Australia, Canada, Peru, Brazil, Chile, Mexico, the United States, etc

the investment environment is four-star, which means that the country has great resource potential, there is a certain threshold for foreign investment, the political situation is relatively stable, and there are certain legal risks such as mining rights and mining land, but at a controllable level, the public facilities are relatively perfect and have better expectations. These include Russia, Argentina, Turkey, Greenland, Indonesia, South Africa, Mongolia, etc

the investment environment is three-star, which represents the medium resource potential of the country. In the global mining investment environment, access, risk and cost are at the midstream level. These include Papua New Guinea, the Democratic Republic of the Congo, Uzbekistan, Myanmar, Colombia, etc

the investment environment is two-star, which means that the resource potential of the country is limited, there are relatively substantial restrictions on foreign investment, and the risks of mining rights and mining land are high and difficult to control; Infrastructure conditions are relatively poor, and future mining investment of enterprises may involve infrastructure investment. These include Vietnam, Guinea, Algeria, Gabon, Malaysia, Cambodia, Angola, etc

the investment environment is one star, which means that the country is at the worst level in the global mining investment environment. The resource potential is small, foreign investment may have substantial industry access restrictions, or it is not allowed to hold shares, the political risk is high, and the infrastructure is imperfect. Investors need to be cautious when choosing to invest in these countries. These include Ukraine, Madagascar, Turkmenistan, Kyrgyzstan, Niger, Mali, Tajikistan, etc

global mining investment is increasingly diversified

at present, on the one hand, more and more countries are opening to the outside world, reducing the entry threshold of mining investment. On the other hand, resource nationalism, resource investment and trade protection are prevalent in many countries, resource policies are changed at will, and the integration of regulations and norms in the mining field of various countries needs to be strengthened. Chenliping, a researcher at the information center of the Ministry of land and resources, said that the global mining investment forbidden zone led by developed countries is decreasing, but it is more open on the macro level. Moreover, the willingness of various countries to tap the new potential of mining is very obvious, and the administrative cost of investment is generally reduced. At present, the mining investment environment in developed countries is generally stable, and the sovereign risk of developing countries is declining

Zhang Xin'an believes that the current global mining investment faces five major trends. The first trend is that the global mining market is about to usher in a slow recovery period. Since the economic crisis in 2008, the global mining industry may walk out of the deformed W-shaped trend. At present, the U.S. economy has begun to strengthen, China's fast-growing economy has achieved a soft landing, and the world economy has slowly recovered. In the early stage, China's investment of $40000 in research with a metallographic microscope, the U.S. revitalization plan, the European revitalization plan and other factors have stimulated the rapid development of the entire mining market, presenting a V-shape. In the later stage, the mining market may be a U-shaped situation and begin to carry out a slow process of structural adjustment

the second major trend is the increasingly clear diversification of international mining investment. Mining investment is not only carried out in mature countries, but also in "fragile countries" with rich resources but unfavorable development environment, and the minerals invested are also diversified. In this process, the choice of capital is greater, and the competition among countries to attract investment is also intensified, but the geopolitical pattern will be more subtle, the mining investment situation will be more complex, and the decision-making will be more difficult

the third trend is that overseas investment is changing from pursuing scale and speed to pursuing quality and efficiency. In the v+u market environment, the global mining industry has evolved from pursuing expansion and high-speed development in the past to paying more attention to investment quality and investment efficiency, which is the inevitable result of mining structure adjustment

Zhejiang Liancheng Electronic Technology Co., Ltd. plans to invest in the construction of zakhanur Industrial Park, processing 300000 tons of new aluminum alloy products (aluminum plate, aluminum strip, aluminum foil, aluminum forged wheel hub and aluminum alloy new materials)

the fourth trend is that the main body of global mining investment is changing from state-owned enterprises to private enterprises. Significant changes have taken place in the global mining capital market, that is, private enterprises have accelerated the process of mining internationalization, and the number of projects and the proportion of investment in overseas mining investment have increased significantly, injecting fresh blood into the global mining investment market

the fifth trend is that mining investment pays more attention to economy. In the process of mining market downturn, investors pay more attention to the sustainable operation ability of enterprises after investment. However, at present, China's overseas mining M & A projects generally have a premium of 20% to 30%, and the capital overspending was not expected at the start of the project. In addition, Chinese enterprises have insufficient experience in overseas investment. From the perspective of value chain, the economic income of enterprises is less than the economic and social contribution to the host country

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