China goes on a mine buying spree

[phantom power]

When China Minmetals Corp. backed away from its hostile bid to take over Canadian-Australian mining company Equinox Minerals Ltd. recently, it did not disappear. Its CEO, Andrew Michelmore, told reporters that the $7.3-billion offered up by Toronto-based Barrick Gold Corp. was too rich to counter.

Then, it went hunting for other opportunities.

Armed with trillions in foreign reserves and a mandate to secure natural resources around the world to feed its insatiable domestic engine, the Chinese are on the prowl for deals. And Canadian mining companies may soon be experts in striking them.

China’s state-owned enterprises are injecting millions into Canadian mining companies seeking to build out new mines. As a signal of future intentions, this year China Investment Corp., a sovereign wealth fund with $300-billion in assets, opened its first foreign office – in Toronto.

http://www.theglobeandmail.com/report-on-business/international-news/china-goes-on-a-mine-buying-spree/article2025342/

[pscot]

1. The growing Chinese Empire

Mines in Canada, Australia and Latin America, farmland in Africa, oil fields all over. And mercantilism at home.