Mining Dragon: The Increasingly Dominant Role of China in the Global Mining Industry

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With a strong focus on mining, China is playing an increasingly important role in the global mining industry, in all 3 aspects: demand, producing, and financing. In terms of demand, China consumes about 40% of metal production in the world, and is expected to continue being the most important importer even with slowing growth rates due to its large base. Annual reports from the top 40 mining companies in the world have mentioned Chinese demand, showing its prominence. Chinese custom statistics show that the annual copper imports have almost doubled and iron ore import volumes have almost tripled since 2005. This mainly stems from the rapid urbanization and industrialization in China.

Other than demand, China is also the world’s largest miner. A study by the Raw Materials Group estimates that China represents 29% of the world’s mining by value, and produced close to 50% of global coal in volume in 2011. In comparison to the overall top 40 mining companies, China’s domestic capital expenditure has become more substantial, and is expected to continue at the same pace. China is also becoming a major source of funding, with more Chinese acquisitions and deals made in the mining industry. Mining companies in China have also been focusing on infrastructure by investing in the development and construction of mines.

IMF estimates that China will maintain a steady GDP growth rate per annum at a little over 8%, showing promise. However, as the mining industry is expected to be far more competitive, will China still be able to charge ahead and keep up with her momentum? To gather more insights, join us at 10th Asia Mining Congress 2014 to find out more about the mining climate in China, Asia and the world from various government representatives, top investors, and key decision-making executives from top mining companies.

Source: PwC

 

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