专家“论坛”畅谈海外矿业投资之非洲篇 2017-12-12 Google translate did its best:...

专家“论坛”畅谈海外矿业投资之非洲篇 2017-12-12

Google translate did its best:
Experts "Forum" talked about mining investment in Africa chapter.

七因素考量投资机遇
"Seven factors consider investment opportunities"

Lianchang Yun said that mineral exploration and development are high-risk and high-return investments in mining in Africa are still opportunities, mainly based on the following seven factors.

First, the exploration level is very low, but the huge potential of resources. According to statistics, Africa's exploration investment is only 5 US dollars per square kilometer, while exploration investment of Canada, Australia and some Latin American countries is 65 US dollars per square kilometer. The amount of resources found in Africa is still low due to underinvestment. In the case of gold, the amount of gold resources found per unit area known to Africa (excluding South Africa) is 5 ounces per square kilometer, compared with 30 ounces per square kilometer in North America and Australia. While high-quality blocks in many of the key metallogenic belt in Africa are held by Western companies, there are still many opportunities to discover large deposits.

Second, the degree of industrialization of mining development is low, and its technology of selecting and smelting and equipment are backward. Many large-scale mines in Africa are mainly producing and exporting raw ore or concentrate powder. Due to the lack of downstream mineral processing and support, the added value of mineral products is low. Therefore, many resource-rich African countries are committed to enhancing the added value of mining projects and advancing the industrialization process. Moreover, raising the level of industrialization in mining development has become a common consensus among resource-based African countries and their policy has been continuously strengthened and clearly strengthened. This has provided an opportunity for the Chinese technology and manufacturing enterprises to "go global" and carry out capacity cooperation.

Third, many African countries are highly dependent on mining. 24 out of 54 African countries have exchanged for more than 75% of their foreign exchange earnings with fewer resource products. The unfavorable factor is that they have a single industry, a low level of economic development and a weak ability to cope with external shocks, but at the same time have a positive impact , Is conducive to the government introduced a positive mining policies and regulations.

Fourth, the relatively low cost of mining development in Africa has attracted the investment of major mining companies in the world. As mining costs in developed countries are rising, many large mining companies are forced to seek investment opportunities in Africa. For example, BHP, the world's largest mining company, canceled some $ 40 billion in Australian project investments for a few years because of high costs. In contrast, low costs in Africa have attracted investments from large global mining companies, including BHP, Rio Tinto, Anglo American and Xtrata. There are even more junior exploration companies in Africa, with more than 200 companies now operating in more than 600 mining projects in Australia alone, in more than 30 African countries. In recent years, Chinese mining enterprises have also made new progress in non-investment. In particular, there are still advantages and opportunities for backwardness in the selection of countries, types of minerals, methods of investment and project intervention.

Fifth, international cooperation in mining has boosted economic and social development. At present, the African Development Bank actively participates in and supports the development of local mining industry, gives full play to the active role of the mining industry in catalyzing economic growth and poverty alleviation and accelerates the process. In the areas of mining policies, basic information, investment opportunities and standards, there is still much room for cooperation between the relevant government departments, agencies, financial and investment enterprises, industry associations in China and African countries, the African Union and the African Development Bank The extensive cooperation in various fields and in various fields will surely promote Chinese enterprises' investment in non-mining industries to be more robust and safer.

Sixth, cooperation with mining companies in South Africa, Australia and Canada. Canadian mining companies have easier access to venture capital, especially for new exploration projects. South African mining companies have in-depth knowledge of the geological conditions in Africa and have strong financial and technical expertise. Australian mining companies have a wealth of experience in discovering gold under grit or laterite cover, making a big difference in Africa. Chinese mining enterprises, in cooperation with these mining companies from different countries, with different specialties, abilities and experiences, will surely enhance their international competitiveness and promote the further development of African mining industry as they collide, compete, integrate and develop in the African continent.

Seventh, the "Belt and Road Initiative" provides new opportunities for non-mining investment. African countries attach great importance to the "Belt and Road Initiative," and take an active part in this. Infrastructure construction has strongly promoted mining development. In turn, mining development has brought about infrastructure construction. The positive interaction between the two will create the most attractive attraction for Africa in the next 10 years Investment Opportunities.

Full article: http://ominet.com/articles/40810/

Lianchang Yun - https://www.linkedin.com/in/长云-连-7070ba10b/
https://www.hkcompa.com/midland-overseas-holdings-limited-2122932/

Hoping you veteran investors can make more sense of this and connect the dots.
GLTHA