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Global mining firms step up efforts to expand presence

In 2023, nation accounted for over 50% of world's metal consumption

By ZHENG XIN | China Daily | Updated: 2024-11-08 10:23

Brazilian mining company Vale's booth at the ongoing China International Import Expo in Shanghai on Thursday. [ZHANG WEI/CHINA DAILY]

Global mining enterprises are stepping up efforts to expand their presence in China, attracted by the country's vast market and recent moves toward broader economic opening, said company executives and industry experts.

As China continues to liberalize trade and streamline foreign investment policies, international mining firms are eyeing an increasingly accessible market to tap into growing demand for minerals and metals, they say.

Jakob Stausholm, CEO of Rio Tinto Group, said during an interview on the sidelines of the ongoing China International Import Expo in Shanghai, that China's commitment to reducing carbon emissions and investing in clean energy technologies sets a benchmark for other nations and that Rio Tinto is eager to strengthen its collaboration with Chinese partners to support and contribute to these sustainable initiatives.

"China's rapid development in renewable energy sectors, including solar and wind power, is exemplary on a global scale," he said. "China accounts for more than half of Rio Tinto's global production, reinforcing the importance of the Chinese market in Rio Tinto's growth strategy. China's economic resilience and 'admirable' energy transition efforts fuel demand not just for iron ore, but also for aluminum and copper, all of which are the company's major business focus."

In recent years, China has relaxed foreign ownership restrictions, reduced tariffs and increased transparency in regulatory frameworks, signaling a commitment to opening its economy further to international players while drawing renewed interest from global mining giants, as they seek to deepen partnerships with Chinese companies and establish a stronger foothold in the market.

An analyst said China's infrastructure push, coupled with rising demand for high-grade metals, positions the country as an attractive destination for global mining firms looking to secure stable, long-term revenue streams.

China's continued drive for greener technologies, including electric vehicles and renewable energy, is expected to increase demand for lithium, cobalt, and other critical minerals essential for battery production, said Zhao Xiangbin, chief strategist at Beijing Gold and Forex Fortune Investment Management.

"With China's rapid industrialization and urbanization, demand for commodities like iron ore, copper and lithium remains robust. China's commitment to open trade policies gives the companies greater confidence to invest more heavily in the country," he said. "As the government focuses on enhancing supply chains for these resources, there will be more opportunities for foreign mining companies to collaborate in areas such as sustainable mining practices, resource exploration and technology exchange."

China accounted for over 50 percent of global metal consumption in 2023, according to data from the World Bureau of Metal Statistics, underscoring the appeal of this market to mining firms worldwide.

According to BHP, as the world's manufacturing powerhouse, China has the highest global demand for crude steel, with the market experiencing remarkable growth since 2010. In 2023, China's crude steel demand reached 911 million metric tons, up an estimated 50 percent from 609 million tons 13 years earlier, it said.

Rio Tinto recently strengthened its partnerships with Chinese firms, including a joint venture with Aluminum Corp of China and China Baowu Steel Group Corp to develop a high-grade iron ore mine, which aims to reduce carbon dioxide emissions in China's steel industry when it starts production by late 2025.

Rio Tinto's increased reliance on Chinese suppliers globally and its confidence in China's economy is not alone. Brazilian mining company Vale shares a similar perspective.

The company signed a memorandum of understanding with Ansteel Group Corp during the CIIE to jointly pursue the development and application of low-carbon steelmaking solutions that could reduce carbon dioxide emissions.

"Vale has a long-term commitment to the Chinese market and strong belief in the prospects of China's long-term growth and of Brazil-China economic and trade cooperation," said Gustavo Niskier, global director of international affairs at Vale. "We remain dedicated to continuously supplying high-quality mineral products and innovative low-carbon solutions to China, aiming to support China's iron and steel industry in accelerating the development of new quality productive forces and achieving a green transformation."

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