They could speak little English, did not present or even have a booth, yet they certainly were the one of the hit attractions at this year’s Diggers and Dealers.
In an unprecedented move, seven delegates from four of China’s biggest and most progressive mining companies attended the international mining forum in Kalgoorlie.
They were on a mission to find more minerals, know-how and even capital to feed their ‘hungry dragon’.
China’s rapid economic development is underpinning huge demand for minerals around the world, particularly in Australia.
In strong support of this supply-demand relationship, the Chinese companies all talked of significantly increasing both their mining and processing capacities to primarily meet domestic demand.
Zheng Yusheng, vice-president of China’s largest nickel producer, Jinchuan Nickel, said his company planned to more than double its 70,000 tonnes of nickel produced annually.
Yang Zewen, the business department manager of Yunnan Copper Industry Group, China’s third largest copper producer, said that by 2010 it hoped to have doubled current copper cathode production to 500,000 units, and produce up to 300,000t of copper concentrate a year.
“China has huge demand, it is a hungry dragon,” he said.
Canadian Imperial Bank of Commerce World Markets Australia managing director Neil Johnson (Diggers and Dealers’ major sponsor) said Australia’s sophisticated mining abilities, as well as its abundant raw materials, made it a prime target for the Chinese.
“They are in Australia looking to sign contracts to import concentrate. That is one thing,” he said.
“At the same time they are looking to develop relationships with Australian miners, and miners from around the world, so they can form joint ventures and eventually learn to become miners overseas.”
Yunnan Copper is currently in discussions with an unnamed Australian mining company to fund copper exploration around Mt Earl in Queensland.
As part of the move Yunnan could form an Australian company based in Melbourne and eventually seek a public listing.
Listed explorer Matrix Metals is currently drilling at its Mt Earl project.
Nereida Flannery, managing director of the China-based investment advisory firm The Balloch Group, which assisted bringing the Chinese miners to Kalgoorlie, said the Chinese were also looking to attract increased foreign investment in China.
Last week Jinchuan finalised an agreement with Western Mining. Under the deal the companies will jointly fund exploration for nickel in China.
Ms Flannery said the companies were being encouraged by the Chinese Government to seek global technology, as well as private finance, to fund domestic exploration and grow local production of raw materials.
Perth-based global engineering firm GHD Minproc has been increasing its share of business in China during the past eight years.
During Diggers and Dealers GRD chairman and former WA premier Richard Court held discussions with Lan Fusheng, the head of the largest privately held mining company in China, gold miner, Zijin Mining Group.
Although circumspect about the nature of the talks Mr Court said that, despite their long history of mining and minerals processing, strong demand was forcing Chinese mining companies to invest large amounts into optimising their existing operations, as well as developing new operations.
“At the same time they are looking at also investing in new projects overseas so we are also able to help advise them on the technical side on some of those projects they are looking at,” Mr Court told WA Business News.
