Overseas mining mergers and acquisitions of the ho

2022-08-13
  • Detail

Listed companies' overseas mining mergers and acquisitions continue to be active and need to be vigilant about risks

listed companies' overseas mining mergers and acquisitions continue to be active and need to be vigilant about risks

China Construction machinery information

Mining investment is an important area for listed companies' overseas mergers and acquisitions. Zijin mining, China Resources and other listed companies recently announced mining acquisitions overseas. However, some analysts pointed out that Chinese enterprises' overseas mining investment faces many risks, and the potential risks should be prevented or resolved by increasing transparency

enthusiasm for overseas mining has not decreased

China Resources announced its private placement plan on June 17. The company plans to raise no more than 28.368 billion yuan for the acquisition of 100% equity of iron ore international (Mongolia) Co., Ltd., Mingsheng Co., Ltd. and Mongolia new lalgot iron ore Co., Ltd

it is understood that iluo River Co., Ltd., a subsidiary of iron ore international, owns the iron ore in Bayangol mining area of Mongolia, which is a large primary magnetite. At present, the mining area under mining and operation covers an area of 1406 hectares. It is rich in reserves and high in grade. The iron ore reserves are 725.4638 million tons. Iron ore produced by Yiluo River company is mainly supplied to China Baotou Steel and other large domestic steel enterprises. Infiniti Co., Ltd., a subsidiary of Nuevo largaut iron ore company, is mainly engaged in iron ore exploration and mining and the import and export of its products. The largaote mining area in Mongolia owned by Infiniti is a large primary magnetite mine, with a mining area of 935 hectares and an iron ore resource of 263885400 tons

According to Zhongrun resources, the company's real estate business is facing a development bottleneck, and the mining business has gradually become the key direction of the company's future business development. Therefore, the company urgently needs to seek new mining resources on the basis of the existing mining industry

Zijin Mining also announced on May 27 that the company plans to raise a total of no more than 10billion yuan through non-public offering, and there are also pipes and sheets for the acquisition of kamoa copper mine in the Democratic Republic of Congo, Papua New Guinea poguera gold mine and other projects

according to Zijin mining, kamoa copper deposit is a newly discovered world-class large layered copper deposit located in the Central African copper belt. According to the report prepared by AMEC technical consulting company in the UK in 2013, calculated by 1% of the cut-off grade, the controlled resource of kamoa copper mine is 739 million tons of copper ore, with an average grade of 2.67%, and the amount of copper metal is 19.7 million tons; The inferred resource is 227 million tons of copper ore, with an average grade of 1.96%, and 4.46 million tons of copper metal; The total copper resource reserves are about 24.16 million tons. Poguera gold deposit is a world-class epithermal gold deposit, ranking 36th in the world's gold deposits and 65th among the 580 gold deposits in the world. According to public information, the total amount of retained proved + controlled + inferred resources of poguera gold mine is 191 tons, with an average grade of 3.47 g/ton; The confirmed + approximate reserves are 94 tons, the average grade is 5.49 grams/ton, and the total gold resource reserves are 285 tons

"going out" faces many risks

some analysts believe that Chinese enterprises face many risks in their overseas investment, including the lack of clear strategic positioning; Lack of awareness and ability of risk prevention; The ability of cross-cultural integration is weak and the credibility is insufficient; Legal, tax and other institutional risks. Therefore, learning to control and control risks is a required course for enterprises to fight overseas

when purchasing overseas mineral projects, some companies often remind investors of the investment environment and investment risks of the project. Zijin Mining said during the acquisition of kamoa copper mine and Papua New Guinea poguera gold mine in the Democratic Republic of the Congo that the Democratic Republic of the Congo is a developing country with relatively backward social and economic development. However, over the past ten years, the country's political situation has been generally stable, its policies have a certain consistency, its relations with China are good, and its society is relatively stable. Katanga is the province with the best economic situation in the country. There has been no war in the past 30 years, and the social security situation is good. Png has a relatively stable political situation and a sound legal system. The PNG government encourages foreign investors to invest in resources and has maintained a good relationship with China since the establishment of diplomatic relations in 1976. In recent years, China's investment in PNG has gradually increased

China resources directly prompted the investment risk in the acquisition plan. China Resources said that Mongolia's mining policy, economic policy, ownership policy and so on are changeable and very unstable. For example, Mongolia's mineral resources law and investment law have been constantly revised in recent years. Moreover, according to Mongolia's mineral resources law, the government should occupy a certain share of the project under specific conditions

increase transparency and resolve risks

the school of economics and management of Tsinghua University and the enterprise social consulting organization can support objects 200 times their weight without deformation. The Research Report on transparency and risk management of overseas investment in China's extractive industry jointly released on June 23 pointed out that appropriately increasing transparency and actively communicating with different stakeholders is an effective way to ensure the legitimacy of overseas investment, It can effectively prevent or resolve the potential risks of enterprises. Chinese enterprises have explored this aspect, but there is still huge room for improvement

with the continuous enhancement of the strength of China's private enterprises and the increasing support of the government for private enterprises to "go global", China's foreign direct investment has gradually evolved from the early state-owned enterprise led model to state-owned enterprises and private enterprises. Ernst & Young believes that Chinese private enterprises have many advantages in overseas investment, such as flexible management system, more rapid development momentum, more diversified investment fields, etc. But at the same time, private enterprises face more resistance than state-owned enterprises to go to sea, and the most prominent is the difficulty of financing. In addition, private enterprises also have some problems in strategy and management. To solve these problems, Chinese private enterprises need "internal and external training": on the one hand, enterprises should constantly improve the core competitiveness of self completing multi-channel closed-loop control; On the other hand, the government is also required to escort private enterprises to the sea

Copyright © 2011 JIN SHI