Home> Previous Issues

    Investing abroad not easy: Experts

    Updated: 2013-07-16 07:13
    By Du Juan (China Daily)
    Comments() Print Mail Large Medium  Small 分享按鈕 0

    Investing abroad not easy: Experts

    Investing abroad not easy: Experts

    A ship from the Wuhan Iron and Steel Group Co waits for iron ore load.[Du Juan / chinadaily.com.cn] 


    As Chinese steel firms step up their efforts to explore resources abroad, there have been ups and downs in their gains because of inexperienced risk management, reports Du Juan in Perth, Australia

    Facing increasing domestic demand for iron ore with high import prices in recent years, Chinese steel companies have been trying to find an effective investment model to make acquisitions cheaper and more predictable.

    They have made moves into Australia, Brazil and Africa, where the resource is found in abundance but some projects have had to be suspended because of various political, financial or environmental reasons while others have been relatively successful.

    Industry insiders and experts said it is currently better for Chinese steel companies to find a local partner familiar with the business in the region than invest huge amounts of money buying up a site entirely on its own to exploit.

    "It is all about balance," said Sebastian Lewis, editorial director of Platts China, the commodities information provider.

    If a Chinese steel company takes a minority stake in a foreign mining company, it can help secure the iron ore supply although the Chinese entity would not be involved in the management, he said.

    "In the case of direct investment, you (Chinese steel companies) own more of the project, which may bring you higher returns during the operation, but it also brings risks because the construction period can be very challenging in terms of managing the project outside your own country and constructing the infrastructure," Lewis added.

    "Neither way is necessarily good or bad. It depends on your tolerance of risk."

    China's largest and most ambitious overseas investment in the mining industry is the Sino Iron project wholly owned by CITIC Pacific Ltd, a Hong Kong-listed incorporated company.

    CITIC Pacific secured the rights to 2 billion metric tons of magnetite resources with an expected mine life of 25 years in 2006. Last year, the company announced that it had acquired a further 1 billion tons of magnetite ore.

    The project was expected to have an investment scale of $4.2 billion and was put into operation in the first half of 2009. However, because of rising costs and various misfortunes, the commissioning date has been delayed several times.

    According to a source within the company, the total investment will increase to about $8 billion.

    However, the source said the operation of the project is not as bad as some say and the second and third phrases of the project will be completed on schedule.

    Although many Chinese companies have been facing challenges, including financial pressure, unfamiliar laws and regulations, environmental and labor issues, they are also making progress and gaining experiences.

    "It is difficult for any company to go overseas at the beginning," said Lewis. "If they just want to secure raw material supplies, it is probably better just to buy shares in these iron ore companies."

    Previous Page 1 2 3 Next Page

    Survey & Comments

    | About us | Contact |

    Constructed by Chinadaily.com.cn

    Copyright @ 2012 Ministry of Culture, P.R.China. All rights reserved

    亚洲国产a∨无码中文777| 亚洲真人无码永久在线| 无码午夜人妻一区二区三区不卡视频| 国产精品中文久久久久久久 | 亚洲精品97久久中文字幕无码 | 亚洲av无码片vr一区二区三区| 少妇人妻88久久中文字幕| 国产在线拍揄自揄拍无码| 精品人妻无码区在线视频| 日韩欧美中文亚洲高清在线| 五十路熟妇高熟无码视频| 少妇无码一区二区三区免费| 国产成人无码区免费内射一片色欲 | 中文字幕精品无码一区二区 | 国产高清无码二区| 亚洲AV人无码综合在线观看| 中文字幕日韩理论在线| 亚洲视频中文字幕| 熟妇人妻VA精品中文字幕| 亚洲中文字幕无码专区| 久久精品无码一区二区三区日韩 | 亚洲AV无码一区二区三区牛牛| 日韩高清在线中文字带字幕 | 日本妇人成熟免费中文字幕 | 中文字幕亚洲码在线| 国产网红主播无码精品| 国产真人无码作爱视频免费| 青青草无码免费一二三区| 无码人妻精品一区二区三18禁| 中文字幕av无码专区第一页| 亚洲色偷拍另类无码专区| 亚洲人成影院在线无码按摩店| 免费看无码特级毛片| 免费无码作爱视频| 亚洲一区AV无码少妇电影☆| 性无码免费一区二区三区在线| 无码日韩精品一区二区免费暖暖| 手机永久无码国产AV毛片| r级无码视频在线观看| 日无码在线观看| 内射无码专区久久亚洲|