画画平远:The Situation of Chinese Mining Industry on M&A Overseas

This current wave of globalization has been driven by not only investment but also information technology and international trade. Investment and development in overseas has became a hot potato nowadays. But for mining industrial, wether or not it is a good thing still need to be tested.
Chinese mining companies will continue to increase both purchases and investment in the overseas market in 2012, the experts revealed. But China's mining industry was strongly influenced by the continue increasing acquisition activity overseas. 
But expert pointed out it is right  to keep quiet in the first half year against the soaring price of high level resources. Because the good time for M&A activity now is coming, and there will be a slight rebound in the price after the huge declines recently. 
Expert predicted that Australia and Canada will continue to be the main target markets for overseas investment, but said that Chinese mining companies will continue to invest in and explore more mines in other countries such as those on the African continent.
But unfortunately, possible resource and carbon taxes, proposed by the Australian government , are likely to come into effect in July next year, which will undoubtedly impose pressure on Chinese mining companies.
While,Canada is expected to see an increase in investment from Chinese companies in the mining industry, the country warmly welcomes Chinese investors in the mining industry. But Deloitte's South suggested that Chinese companies need to find right partners because most of the Chinese companies lack of overseas business management while mining industry is a highly risky business.He took an suspension project in Western Australia for instance, which because of problems with the local infrastructure. Meanwhile, some other Industry insiders also pointed out that even though China has signed many M&A contracts with foreign companies, not all of the deals will be completed because of alleged problems with the managements.
It seems like management is a big risk for Chinese companies and Chinese companies should build better relationships with foreign companies to ensure cooperation in the exploration of resources.
It may beeter for Chinese companies to look further attracting necessary funds over the long term. And they also need to build the necessary relationships to gain access to foreign markets.
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