Minmetals plans more overseas M&As

10:36, June 17, 2010      

Email | Print | Subscribe | Comments | Forum 

China Minmetals Group, the nation's largest metals trader, is planning more overseas mergers and acquisitions (M&A) in ferrous metals this year to bolster its raw material supplies.

The company is looking for overseas mining assets in iron ore, chromium, manganese and coal, mainly in Australia, Canada, the Middle East and South Africa, said an unnamed Minmetals source.

"These sectors are major tasks for overseas M&As in ferrous metals this year," said the source from the ferrous metal sector.

China Minmetals' Australian unit Minerals & Metals Group (MMG), which is in the nonferrous metal business, said in a statement on Wednesday that it was identifying M&A targets in nations including Australia.

Minmetals already has successful overseas acquisition experience. It paid $1.4 billion last June for Oz Minerals, including the Rosebery zinc mines in Australia.

Minmetals Chairman Zhou Zhongshu said earlier this year that the company would look at overseas M&As to become a globally competitive mining group. He said its overseas subsidiary MMG would serve as an international investment platform, and it will continue monitoring mining assets and deals at low costs.

In spite of the revenue decline due to lower commodity prices, the company's assets grew 136 percent as it successfully acquired several domestic and overseas mining assets.

Chinese companies have been active in overseas mining investment in recent years to expand mineral wealth.

China, which dominated the global mining and metals transactions market in 2009, has already seen a strong start in the first quarter of 2010 in global mining transactions, with outbound value and volume going up 247 percent and 225 percent respectively, according to a recent report from Ernst & Young.

The report said Chinese investment in the overseas mining sector will still go up this year, but its market share of global mining transactions might drop considering the strong competition from other countries recovering from financial crisis.

Source:China Daily

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Giant red lantern lights up in Tiananmen Square to celebrate the coming National Day on Oct. 1. (Xinhua/Li Xin)
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
Hot Forum Discussion