浙江之源资产评估有限责任公司
Analysis of In-Depth Surveys on Overseas Mining Investments by Chinese Enterprises—Investment Environments in Various Countries
Release time:
2015-07-17
Source:
To gain a deeper understanding of China’s overseas mining investment activities, we conducted an extensive mail survey among domestic enterprises engaged in overseas mining investments. A total of 96 valid questionnaires were returned, covering 70 domestic investment entities—primarily companies that “went global” between 2009 and 2010.
Among the surveyed samples, the primary mineral investments were copper, gold, and iron, with 22, 22, and 21 cases respectively. The project locations were predominantly in Asia and Africa, each accounting for 27 cases, or 28% of the total; North America and Oceania ranked next, with 19 projects, representing 20%; Latin America had 18 cases, and the Commonwealth of Independent States (CIS) had 5 cases, accounting for 19% and 5%, respectively. In the surveyed samples, state-owned enterprises were the dominant investors, making up 66.67% of the total. Overall, the surveyed projects are fairly representative; the structure of invested minerals and the distribution of investment destinations largely mirror the broader trends, while also highlighting more prominently the overseas investment activities of state-owned enterprises.
(1) Statistical Results
The statistical survey on the investment environment in various regions primarily covers the following 16 items: corruption in the project location, resistance from labor unions and local communities, local protectionism, illegal mining activities, safety risks associated with personnel, xenophobic traditions, conditions for mineral rights transfers, whether the mining area is located in a sensitive zone, natural disasters, the political system and government stability, transportation infrastructure, resistance from indigenous populations, labor supply, laws, regulations, policies, and environmental impact assessment approvals. For details, see Table 1. (Scoring instructions: For items where the response is “Yes” or “No,” “Yes” receives 100 points and “No” receives 0 points; for items where the response is “High,” “Medium,” or “Low,” “High” receives 100 points, “Medium” receives 50 points, and “Low” receives 0 points; for items where the response is “Yes,” “Unclear,” or “No,” “Yes” receives 100 points, “Unclear” receives 50 points, and “No” receives 0 points.)
Table 1: Investment Environment Score Status
|
Statistical item |
Asia |
North America and Australia |
CIS |
Africa |
Latin America |
|
Does the country where the project is located have any corruption issues? |
35.71 |
94.44 |
80 |
35.19 |
50.00 |
|
Local labor unions, community groups, and green environmental organizations. |
51.85 |
27.78 |
10 |
42.59 |
25.00 |
|
Government local protectionism situation |
51.79 |
77.78 |
80 |
53.70 |
58.33 |
|
Does the phenomenon of illegal mining exist? |
82.14 |
97.22 |
90 |
72.22 |
77.78 |
|
Are there any personnel safety hazards at the project site? |
78.57 |
88.89 |
100 |
61.11 |
86.11 |
|
Does the region where the mining area is located have a tradition of xenophobia? |
73.21 |
88.89 |
100 |
85.19 |
77.78 |
|
Conditions for Transfer of Mining Rights |
61.11 |
97.22 |
80 |
76.00 |
79.41 |
|
Is the mining area located in a military, culturally sensitive, or nature conservation zone? |
96.43 |
94.44 |
100 |
92.59 |
100.00 |
|
Is the natural disaster in the mining area severe? |
85.71 |
100.00 |
100 |
98.15 |
91.67 |
|
The political system and governmental stability of the country where the project is located. |
60.71 |
97.22 |
70 |
62.96 |
77.78 |
|
What are the transportation conditions like in the mining area? |
48.15 |
58.33 |
40 |
37.04 |
63.89 |