Chinese miners continue Latin American shopping spree

by Hongwei Shang on February 1, 2008

in News

Posted By Gill Montia On Thursday, January 31, 2008 @ 11:04 am In Mining Company News | Comments Disabled

China is continuing to acquire some of the last remaining big mines in Latin America, in a bid to secure the future of its fast growing economy.

The country currently produces less than half the copper and less than 70% of the alumina it uses, and while Chinese mining companies are looking worldwide for acquisitions, Latin America offers less risk than some other regions.

China has, for example, invested billions of dollars in Africa in recent years but political and civil instability combined with a lack of infrastructure continues to hinder production on the continent.

On the other hand, Latin America has a long mining history and sound regulatory frameworks for overseas companies, plus the ability to transport straight across the Pacific Ocean.

In terms of opening up new overseas reserves Chinese companies have the advantage over their Western competitors because they can create new mines at up to 50% less cost, by importing everything from vehicles to staff.

China has already acquired some of the biggest remaining mines in Latin America; only this month Jinchuan Group, China’s largest nickel producer, bought Mexico’s largest unexploited copper-zinc deposit, from Tyler Resources of Canada.

Jinchuan Group is also reported to be in talks with Petaquilla Minerals about its undeveloped copper property in Panama.

In December, China’s Minmetals and Jiangxi Copper acquired Canadian owned Northern Peru Copper Corp, and in June of last year, Aluminum Corp of China agreed the purchase of Peru Copper, owner of the Toromocho property, which has the potential to become one of Peru’s largest copper mines in the next four years.

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Article printed from Metal Prices @ Metal Markets: http://www.metalmarkets.org.uk

URL to article: http://www.metalmarkets.org.uk/2008/01/31/chinese-miners-continue-latin-american-shopping-spree/

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