Overseas Junior Mining & Exploration Investment Opportunities for Chinese Mining Companies
In the current international market, junior exploration companies with their high flexibility, rapid implementation of prospecting and financing capacity in risk capital markets, are playing an increasingly important role in the exploration stage. In recent years, 80% of the important discoveries are made by junior mineral exploration company. Exploration prospecting requires a great deal of capital investment, paradoxically, in the capital markets, these exploration companies often do not have steady operating results and a stable cash flow, it may even be the case that the only major property they own are their exploration rights. The problems of financing are for junior exploration companies the toughest issue in the international mining market development that they face.
Exploration investment is unable to finance itself though traditional financing methods. Due to the high-risk of outbound mining investment, it is always difficult for overseas exploration activities to obtain commercial financing. In the context of the economic downturn, financial institutions want to get high-quality assets, so unless the company's project is very competitive, financing proves very difficult to obtain. Currently the global mining capital markets have suffered severe losses, whether in Australia, Canada or South Africa the financing of mining enterprises is in deep difficulty. According to Wang Jiahua, vice president of China Mining Association revealed in the National Prospecting event, the market value of overseas exploration companies and mining companies has been severely diminished, most companies has fallen by about 70%, some even fallen by 90 %.
However, the Chinese investors have showed a growing interest in overseas mining investments. At present, international metal prices are low; and in recent years, exploration findings mostly came from junior exploration companies, in the later stages of exploration, the needs of financing naturally become intense. Meanwhile, global exploration investment hit a record high, the number of newly discovered mines will increase, and financing needs will be more intense. It has now been ten years since the implementation of China’s "going out" strategy, during this time China has accumulated rich experience in overseas mining investment, now is just a good time to "Go out".
CHINA MINING to provide new information on overseas projects to build the world's largest mining capital and project matching platform
This year's CHINA MINING will be devoted to open up a special area for overseas junior mining exploration enterprises. During the Forum, the participation of different types of financial institutions will also provide many new financing opportunities. Due to the downturn of the global economy and the capital markets, it has brought more opportunities for Chinese enterprises to invest overseas. National shortage of funds in the international capital markets and investment index decrease, every country is looking for new investment.
Institutions from different countries' mining sectors, famous international mining experts from the capital markets and investment & financing institutions will discuss the issues of “International Junior Mining & Exploration and Capital”, “Small and Medium Mining Enterprises Investment”, dedicated to help international and domestic mining companies understand the policy, as well as the matching project and provide a strategy for dealing with mining competition, in addition, to promote the formation of an effective mechanism for docking between junior exploration enterprises and financing capital. At the forum, participants may have face-to-face, one-to-one opportunities to negotiate with the project parties and their competent authorities. Meanwhile participants have access to investment-related services and support to policy information.
On a global platform which offers Chinese investors and international junior exploration companies the chance for business ventures, this forum’s investment opportunities will become a stage for the mutual benefit of junior exploration services and investors. In the current global trend of economic and mining development, potential domestic and foreign mining companies involved in large-scale mining have responded positively towards this session of the China International Mining Conference. Despite the global economic downturn, although the mining sector M & A market is cooling off it’s not in total decline, China capital and the M & A market will become the backbone of support.
About China Mining
CHINA MINING Conference and Exhibition - one of the world’s largest mineral investment, cooperation and trading platforms - covers the whole value chain, including geological surveying, exploration development, mining rights trading, mining investment & financing, smelting & processing, technique & equipment, mining services and many more. CHINA MINING plays a critical role in creating more communication and co-operation opportunities for domestic and international industry communities.