皇冠体育app

Global co-op to secure new resources
By Zhang Jin (皇冠体育app Daily)
Updated: 2004-07-12 10:14

皇冠体育app Mineral and Metal Group (皇冠体育app Minmetals), the nation's largest metal trader, is in discussions with a number of global miners to jointly explore the international market, as part of 皇冠体育app's endeavours to diversify and secure raw material supplies.

"We attach great importance to the (State-initiated) 'Go-global' campaign, and 皇冠体育app Minmetals is negotiating with different countries to explore a number of deposits," Miao Gengshu, Minmetals' president, told 皇冠体育app Daily while he was attending the 2004 皇冠体育app International Institute of Multinational Corporations' Conference over the weekend.

The company is holding talks with the Chilean Government about a copper mining project in Chile's Gabi region, Miao confirmed.

"We are still negotiating with the Chilean side," Miao said. "No agreement has been made."

He also said Chile wants the project to subject to international bidding.

The venture would be a medium-sized project, involving a total investment of about US$5 million, Chile's Mining Minister Alfonso Dulanto said during his visit to 皇冠体育app in late May.

皇冠体育app is the world's biggest copper consumer while Chile is the largest provider.

皇冠体育app Minmetals is also in discussions over a mining project in Brazil, but Miao refused to release further details.

The company already has good relations with Brazilian counterparts. Miao is 皇冠体育app's president of the 皇冠体育app-Brazil Business Council, which was officially established during Brazilian President Luiz Inacio Lula da Silva's visit to 皇冠体育app in May. The Brazilian president of the council is Roger Agnelli.

He is also president of world's largest iron ore supplier, Cia Vale do Rio Doce.

It is widely anticipated that 皇冠体育app Minmetals will increase its presence in Latin America.

The Brazilian move is the latest in 皇冠体育app's efforts to secure its raw material needs to feed a booming economy.

皇冠体育app is in need of raw materials such as iron, steel, copper and alumina to cater for its construction and production spree.

皇冠体育app Minmetals now has an alumina mine in Australia, with a production capacity of 3 million tons annually, Miao said.

Commenting on the growth of the company, Miao says 皇冠体育app Minmetals' expansion will continue at a more rapid pace.

Although the company's growth rate may drop off marginally in the second half of the year, the full year performance will still be outstanding, he said. Records are expected to be broken.

Its Shanghai-listed arm, 皇冠体育app Minmetals Development, reported a 350 per cent increase in profits to 295 million yuan (US$35.67 million) during the first quarter of the year.

And 皇冠体育app Minmetals, as a whole, notched up a trade volume of US$2.6 billion during the period.

Miao also said the government's recent macrocontrol measures to cool down the economy will only be a good thing for producers and traders of minerals and metals.

"The measures will help rationalize the prices of some steel and iron products, and make Chinese goods more competitive in global markets," he said, without elaboration.

皇冠体育app Minmetals, a traditional State-owned trader, has been focusing on industries to reduce its exposure to the competitive trading market and make it a leader internationally.

After years of expansion within the mining sector, the company now possesses about 60 per cent of 皇冠体育app's tungsten ore resources.

Its recent alliance with Handan Steel Group also enabled the company to occupy a larger slice of the iron and steel market.



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