Abstract When a large number of mining enterprises and geological prospecting units have invested in overseas mining investment, non-mineral enterprises that have not yet suffered losses have begun to become the mainstream of investment. On November 2nd, Changxing Guo, head of the International Department of China Mining Association (hereinafter referred to as “China Mining Associationâ€), introduced at the 2013 China International Mining Conference...
When a large number of mining enterprises and geological prospecting units have invested in overseas mining investment, non-mineral enterprises that have not yet suffered losses have begun to become the mainstream of investment. On November 2nd, Changxing Guo, head of the International Department of China Mining Association (hereinafter referred to as “China Mining Associationâ€), introduced at the 2013 China International Mining Conference. In the first three quarters of this year, China National Mining Corporation accepted a total of 103 overseas investment projects of Chinese enterprises. For example, the year-on-year decrease was 8.0%, and the Chinese agreed investment amount was 3.136 billion US dollars, a year-on-year decrease of 10.9%. Among them, the cross-industry enterprise investment amounted to 2.38 billion US dollars, accounting for more than 70%.
Non-mineral enterprises invest in mining and lead
The above statistics are a record commissioned by the Ministry of Land and Resources and the Ministry of Commerce for the “going out†enterprises, mainly including transactions completed in the previous three quarters. These investment transactions mainly involved 101 Chinese companies, including 10 listed companies. The agreed investment amount of these enterprises reached 1.153 billion yuan, accounting for 36.8% of the total investment.
Among them, the amount of mergers and acquisitions was 1.124 billion US dollars, down 15.1% year-on-year. The exploration and exploration amount was 380 million US dollars, down 20.5% year-on-year. The construction value of mines was 1.48 billion US dollars, down 13.7% year-on-year. “The decline in survey and exploration is still higher than the decline of the other two, indicating that the confidence of enterprises in overseas exploration has not recovered,†Chang Xingguo said.
At present, the “going out†enterprises are mainly divided into four categories, one is private enterprises, most of which have strength, but the scale is relatively small; then the geological exploration enterprises, the expertise is technical support, but the total amount of economy is relatively low; The class is a large-scale mining enterprise. The advantage lies in the technical management advantages in development, and the strength is also strong. The fourth category is financial enterprises. Financial enterprises are also the largest in terms of capital, but it is for technology, for the whole mining and development. Management is at a disadvantage.
However, from the order of investment amount, cross-industry enterprises have become the main force of overseas investment. The data shows that the agreed investment amount of cross-industry enterprises, mining enterprises and comprehensive enterprises is 2.38 billion US dollars, 528 million US dollars and 219 million US dollars respectively.
In the sub-forum, Wang Jiahua, executive vice president of the China National Mining Association, as the moderator, issued a warning to the above-mentioned non-mineral enterprises. He reminded investors that when the mining industry was hot in the previous stage, a large number of Chinese mining enterprises and geological exploration units went out, but many of them were returning from the feathers. Non-mineral enterprises should pay more attention to rationality. Ignorance is fearless, and their painful lessons, you must learn."
Due diligence is the key
Qi Zhengming, chief partner of Beijing Yuren Law Firm, said that “statistics show that the current investment failure rate is over 67%â€.
Wang Jiahua revealed that the failure rate of actual mining investment is much higher than 67%, reaching 80%.
China Mining Association believes that Chinese companies have relatively strong speculative investment in mining in some countries, and the proportion of small and medium-sized mines is too high. Unregulated and low-level mining development is likely to cause serious overseas rebound, while some large-scale projects are for community development and Insufficient attention to information transparency can easily lead to misunderstandings and contradictions with local communities, resulting in loss of personnel property.
Taking Mongolian investment as an example, Zhang Shuguang, director of the Beijing-based Longan Law Firm's Ulaanbaatar branch, said that more than 95% of companies failing to invest in Mongolia are lacking effective legal due diligence on their partners. “Many Chinese companies are not very standardized in investing in Mongolia. Most companies obtain information on some mineral rights projects through various channels, such as through friends, through various channels in the society, and then sign through a middleman, signing within one or two months. The contract."
Pan Guocheng, president of China Hanking Holdings Co., Ltd. also believes that the failure of mining companies to invest overseas is a major problem in the due diligence phase, which is 80% of the success of the entire project.
"A lot of investment may be strategic in the long run, but it can be a 'tactical' period. This is a big problem." Changxing said that many professional companies, once cross-regional cross-minerals Unprofessional, like some financial institutions, may be financially good at it, but many industries at first glance can see that the investment misunderstanding is not feasible, they can not see. “Without advantages and no experience, coupled with poor information, it is easy to make investment mistakesâ€.
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