Although the world has been struggling to cope with the financial turmoil that has rocked countries in recent years, officials from China’s Ministry of Land and Resources have stated that the mining industry around the world shows good development potential.
According to China Daily, global investment on mining exploration projects for non-fuel solid minerals is expected to reach between $13 and $14 billion in 2011. This level of investment indicates that global mining has returned to its healthy developmental track that was seen before the economic slowdown, according to vice minister of land and resources Wang Min.
Wang announced the good news at the 13th China Mining Congress and Expo, which runs from November 6 to 8 in the Tianjin province.
At the event, Wang stated that the world’s demand for copper is expected to rise by 5 percent in 2011, while the global demand for aluminum is also expected to rise by as much as 8 percent. International production of gold is expected to increase by 5 percent, the news source stated.
As developed countries begin to strategically lay out new mine plans and projects, further research will be conducted on raw mineral extraction and new technology that will aid in resource production.
Africa’s mining industry is an impressive example of the resurgence of the sector after the econominc downturn. The country’s mining industry has seen better-than-expected growth, which has sparked the interest of several Asian investors, Mining Weekly reports.
With these international investments, the potential for even further mining growth will spur new possibilities for the development of African countries, in turn enabling more mining growth – a beneficial cycle for the entire country.
Investments from China have been steadily increasing in the region from both larger and smaller companies, which have had a positive effect across the board, the news source stated.
China Daily reports that a new bustle of mining merger and acquisition activity will also help to improve the world mining outlook. In the first half of 2011, there were 1,379 global mergers and acquisitions, with the trade volumes setting a record-high $71 billion. Compared to the same figures from 2010, this indicates an 80 percent increase in M&A activity.
The mergers were primarily seen in Canada, Australia and Europe, and focused on coal, iron, copper, gold and potassium mining companies.
China has also seen vast growth in its mining sector, with investments reaching 2.6 trillion yuan ($410 billion) in the first three quarters of 2011, a 27.9 increase from the year before.
With China’s economy driven by close macro control of the government, support for the nation’s mining sector has surged, leading to many new expansions and projects. Wang stated that the country has seen smooth progress in its mineral exploration programs and stable growth in production nationwide.
“China will deepen the pragmatic cooperation in global mining industry and oppose the trade protectionism. China will also facilitate to establish a fair and rational system for international mining products, trade and investment,” he said.
Adding to the country’s success, the price of minerals has stabilized since the recession, with the total volume of imports and exports increasing to $704.5 billion, a year-on-year increase of 34.7 percent, the media outlet stated.
As international investment in the world’s mining industry continues, exploration, production and exports are expected to pick up globally. The higher investments from Asia to emerging nations, such as those in Africa, will aid in developing new mining sectors in areas previously thought to be too problematic, also adding to global mining growth.
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