Chinese mining acquisitions overseas have hit their highest level in more than a decade as companies race to secure the raw materials that underpin the global economy in the face of mounting geopolitical tension.
There were 10 deals worth more than $100M last year, the highest since 2013.
2024 was the most active for Chinese overseas mining investment and construction since at least 2013.
The country’s huge demand for raw materials — it is the world’s largest consumer of most minerals — means its mining companies have a long history of investing overseas. The rise in dealmaking partly reflects China’s efforts to get ahead of the deteriorating geopolitical climate, which is making it increasingly unwelcome as an investor in key countries such as Canada and the US.
The trend has continued since the start of this year. 
Zijin Mining recently said it planned to acquire a gold mine in Kazakhstan for $1.2B. Appian sold its Mineração Vale Verde copper and gold mine in Brazil to Baiyin Nonferrous Group for $420M in April.
China dominates the processing of most critical minerals — including rare earths, lithium and cobalt — but has to import a lot of the raw materials.
The US and many European countries are trying to reduce their dependence on China for these metals, which are key to the production of everything from electric vehicle batteries to semiconductors and wind turbines, and develop alternative supply chains.
Western countries including Canada and Australia were “increasingly wary” about Chinese investment in local mining assets given “the strategic nature of a lot of these minerals”.
Chinese companies had become adept at snapping up mining assets from western rivals in recent years, often being willing to take a longer term view on valuations and invest in riskier jurisdictions.
“The Chinese government used to select one buyer per asset sale process and back that group. What’s evolved over the past three to four years is the government allowing Chinese groups to compete with one another. That implies they don’t fear losing to the west anymore.”
China had been making deals “to actively keep the west out of certain critical materials which they dominate”.
“Every time someone gets close to mining lithium, the Chinese come running with a cheque book.”
The most active Chinese mining groups in overseas deals include CMOC, MMG and Zijin Mining.
Chinese financial institutions have also issued billions in loans for minerals mining and processing projects in the developing world.
Chinese companies were positioning themselves to benefit from resource nationalism in nations such as Mali.
Some military governments in Africa have sought to take control of western mining assets and are demanding higher royalty payments. Chinese companies are often prepared to accept a less lucrative arrangement if they can take over the running of the asset.
ft.com/content/51c201
Zijin Mining recently said it planned to acquire a gold mine in Kazakhstan for $1.2B. Appian sold its Mineração Vale Verde copper and gold mine in Brazil to Baiyin Nonferrous Group for $420M in April.
China dominates the processing of most critical minerals — including rare earths, lithium and cobalt — but has to import a lot of the raw materials.
The US and many European countries are trying to reduce their dependence on China for these metals, which are key to the production of everything from electric vehicle batteries to semiconductors and wind turbines, and develop alternative supply chains.
Western countries including Canada and Australia were “increasingly wary” about Chinese investment in local mining assets given “the strategic nature of a lot of these minerals”.
Chinese companies had become adept at snapping up mining assets from western rivals in recent years, often being willing to take a longer term view on valuations and invest in riskier jurisdictions.
“The Chinese government used to select one buyer per asset sale process and back that group. What’s evolved over the past three to four years is the government allowing Chinese groups to compete with one another. That implies they don’t fear losing to the west anymore.”
China had been making deals “to actively keep the west out of certain critical materials which they dominate”.
“Every time someone gets close to mining lithium, the Chinese come running with a cheque book.”
The most active Chinese mining groups in overseas deals include CMOC, MMG and Zijin Mining.
Chinese financial institutions have also issued billions in loans for minerals mining and processing projects in the developing world.
Chinese companies were positioning themselves to benefit from resource nationalism in nations such as Mali.
Some military governments in Africa have sought to take control of western mining assets and are demanding higher royalty payments. Chinese companies are often prepared to accept a less lucrative arrangement if they can take over the running of the asset.
ft.com/content/51c201
