China enterprises invest USD 6 billion to acquire overseas mines

China Knowledge reported that Chinese enterprises spent USD 6.61 billion in the acquisition of overseas mines last year.

To acquire the overseas assets, several large sized Chinese enterprises launched overseas mergers and acquisitions last year including Aluminum Corp of China, or Chinalco, Jinchuan Group Ltd and Wuhan Iron and Steel Corp.

Jinchuan Group, the most active buyer among the Chinese companies has acquired three overseas mines for a total of more than USD 500 million.

The largest investment was contributed by Shandong Iron & Steel Group Co Ltd whose investment in an iron ore project in Africa worth USD 1.5 billion while Chinalco which teamed up with Australian mining company Rio Tinto to develop the Simandou iron ore project in Guinea for USD 1.3 billion was the second-largest project in the mining industry in terms of investment size.

Mr Jeremy South the person in charge of Deloitte Mining division in China said that Chinese enterprises were prudent with overseas M&A and they often seek cooperation with other companies while investing in overseas mines.

（Sourced from China Knowledge）