NEWS - Beijing set to extend support for overseas resource investments

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Vivian Teovivian.teo@fastmarkets.comJoint News Editor - Asia

Singapore 19/01/2016 - Beijing is expected to extend policy support to encourage Chinese companies to invest in overseas resources, according to Xin Guobin, Chinese vice minister of industry and information technology.

The ministry will study the implementation of policies and measures to support major foreign investment projects and improve co-operation with banks and financial institutions to encourage companies to "step out" of China for resource investment, Xin said in an official statement released on Tuesday.

Xin had made the remarks at a seminar held in Beijing by the National Development & Reform Commission and China Minmetals Corp on January 17, which was attended by government and association officials as well as financial institutions.

The ministry will also strengthen its 13th-five year plan for the Chinese non-ferrous metals industry to provide direction and support for overseas resource development, he said. The statement did not set out detailed measures.

Chinese companies have in recent years stepped up their investment and development of overseas mineral resource projects to meet the raw material needs of the country's growing base metals capacity. 

State-owned Minmetals, the country's largest metals and steel trader, is seen at the forefront of such investments - it has extensive overseas mining holdings, including the Las Bambas copper mine in Peru.

In December, Minmetals also said it was looking to speed up its overseas investments in resources such as copper and zinc following its merger with China Metallurgical Group (MCC).

Another state-owned Chinese company making headway in resource investment overseas is Aluminium Corporation of China (Chinalco), which owns the Toromocho copper mine in Peru as well as copper exploration projects in Australia.

 

(Editing by Mark Shaw)



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