Post by caveman on Nov 13, 2008 22:37:33 GMT -5
www.chinamining.org/Specials/2008ChinaMining/2008-11-13/1226564675d19058.html
China's economy stimulus plan to spur demand for overseas mineral resources
(www.chinamining.org)
Updated: 2008-11-13 15:55
Counter:1716
China's four trillion yuan economy stimulus plan is expected to drive up the demand for overseas mineral products.
The prices of mineral products on international market have kept on falling in price recently. Global financial crisis has exerted great impact on commodity flow, dragging down prices of major raw materials and metals. Some mining giants like Rio Tinto, and Companhia Vale do Rio Doce (Vale) are forced to announce production cut.
As soon as China announced the economy stimulus plan, mining stocks in Australian stock markets jumped on Monday, with Rio Tinto and Vale up 7 percent and 7.9 percent, respectively.
For a long run, China will have a strong demand for raw materials in the process of industrialization and urbanization, and Australia hopes to provide China with high-quality raw materials as well as some technology and services, said Graeme Leslie Meehan, Minister of Australian Embassy in China at China Mining 2008.
Compared with the eight mining giants which control almost 50 percent of global mineral products supply, China's mining enterprises are smaller and weaker in pricing capacity, according to Wang Yan, CEO of BOC International Limited.
When the global economy was booming, China faced many restrictions to go out for mining investment and was the passive price receiver, added Wang.
Xu Shaoshi, head of the Ministry of Land and Resources (MLR), emphasized the necessity of establishing long-term supply relations with international mining industries especially when price negotiations for iron ore this year has undergone great difficulties.
The policy support should not only focus on expansion of production capacity but also stimulation of domestic demand, suggested Jia Qihai, Director of Mining Development Division of MLR.
Supporting some mining enterprises for overseas exploration is one approach to optimize resources supply structure, Jia added.
China's economy stimulus plan to spur demand for overseas mineral resources
(www.chinamining.org)
Updated: 2008-11-13 15:55
Counter:1716
China's four trillion yuan economy stimulus plan is expected to drive up the demand for overseas mineral products.
The prices of mineral products on international market have kept on falling in price recently. Global financial crisis has exerted great impact on commodity flow, dragging down prices of major raw materials and metals. Some mining giants like Rio Tinto, and Companhia Vale do Rio Doce (Vale) are forced to announce production cut.
As soon as China announced the economy stimulus plan, mining stocks in Australian stock markets jumped on Monday, with Rio Tinto and Vale up 7 percent and 7.9 percent, respectively.
For a long run, China will have a strong demand for raw materials in the process of industrialization and urbanization, and Australia hopes to provide China with high-quality raw materials as well as some technology and services, said Graeme Leslie Meehan, Minister of Australian Embassy in China at China Mining 2008.
Compared with the eight mining giants which control almost 50 percent of global mineral products supply, China's mining enterprises are smaller and weaker in pricing capacity, according to Wang Yan, CEO of BOC International Limited.
When the global economy was booming, China faced many restrictions to go out for mining investment and was the passive price receiver, added Wang.
Xu Shaoshi, head of the Ministry of Land and Resources (MLR), emphasized the necessity of establishing long-term supply relations with international mining industries especially when price negotiations for iron ore this year has undergone great difficulties.
The policy support should not only focus on expansion of production capacity but also stimulation of domestic demand, suggested Jia Qihai, Director of Mining Development Division of MLR.
Supporting some mining enterprises for overseas exploration is one approach to optimize resources supply structure, Jia added.