Exclusive outtakes from industry leaders
from Changing China:
Chinese mining companies are expanding overseas because they are cost-effective and willing to work in dangerous and risky areas where others are unwilling to go, Yang Junmin, vice general
manager of Beijing Sinodrill, asserted at the Reuters China Investment Summit.
Some critics accuse Beijing of supporting corrupt regimes in Africa, the Middle East and Latin American, where Chinese companies are investing aggressively to secure access to raw materials to fuel the country's rapid economic growth.
"If we could find an African company to do the work, nobody would need a Chinese company," Yang said. "Africans are very impressed with the work we do there."
"It's a simple matter of economics," he said, pointing out that Chinese companies are also willing to take on risks of working in countries such as Afghanistan.
This week’s annual Reuters Global Mining and Steel Summit has been a pretty rich event.
Oh, the guests have been stellar, for sure, but there’s also been a lot of talk about gold and jewelry and the prospect that maybe someday this lousy economy will turn around.
There is an entire industry out there about what to do to make a merger a success. Many of us know bankers or lawyers who work for weeks and hours on end just to make sure their deals are perfectly done with all the t’s crossed and the i’s dotted.
Millions of dollars are spent on just teaching people the best way to get a transaction from idea to completion.
Kinross Gold’s CEO Tye Burt said at the Reuters Global Mining and Steel Summit on Wednesday that as far as mergers and acquisitions go, his company is in a pretty good place — there are more deals hitting his desk, sellers are getting more motivated and Kinross, the third-largest of the Canadian gold miners, has the cash to do a little shopping.
While Burt did not expect to be party to one of those huge mega-deals, he did indicate the company was keeping its options open — and was listening for bargains.
As a global recession hits just about every industry, steelmakers too have felt the brunt, logging dramatic declines in demand.
Output for steel globally sank nearly 25 percent in January alone, with North America posting a more than 50 percent decline. Still analysts say the steel industry may be positioned to survive a recession.