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The reasons behind all the Chinese M&A

Kitco News

Rapidly depleting resources and permission to build businesses at scale are some of the reasons Chinese miners are making so many acquisitions, said Scott Trebilcock, CEO of KORE Mining.

Tebilcock joined Kitco's Michael McCrae and Mining Journals' Paul Harris on Friday for a discussion of major mining news of the week.

In a research piece from last week Haywood noted that there have been four acquisitions backed by Chinese entities this year, and three within the last three months. Deal highlights are Zijin coming out on top to acquire Guyana Goldfields at $323 million. There is also Shandong attempting to buy TMAC for $230 million.

Trebilcock said Chinese miners are being driven to look for ounces outside China.

"Many of the known deposits are being depleted," said Trebilcock.

"And then finally, we've seen reforms in the last five years in China that have allowed the larger companies to list their shares internationally and get out from under the centralized control. That's freed up this well-capitalized large group of companies driven by shareholder interest for growth."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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