Liberty Star Uranium and Metals Corp (LBSR)

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China’s Mining Companies Begin Moving Overseas

by Tony D’Altorio, Investment U Research
Monday, April 11, 2011



...........Chinese Mining Companies Are Finally Catching a Break


Despite the setbacks, conditions are shifting in favor of Chinese mining firms. Chinese manufacturers are now paying higher prices for raw materials as the country’s own demand is driving global market prices.

Just recently, the Chinese government began to encourage its domestic companies to look for acquisition opportunities as its demand for metals continues to increase. This has intensified China’s push to ensure a long-term supply of key metals while freeing itself from the punishing prices demanded by global mining firms.

Chinese mining companies are expected to follow in the steps of their oil brethren. Many observers of the global mining industry believe merger and acquisition activity is going to swell in the coming years. The head of metals and mining for Ernst & Young, Mike Elliott, said, “In five years’ time, when you talk about the major diversified global mining houses, there will be at least one or two that will be based in China.”