China’s Overseas Mining Investment Sets New Record

China’s Mining Investment Surges Amid Geopolitical Tensions

China’s overseas mining investment hit its highest level in over ten years in 2024. Beijing is urgently pushing to secure critical raw materials. According to S&P and Mergermarket data, Chinese firms completed ten deals worth over $100 million. This marks the busiest year since 2013. Analysts say mounting political resistance in countries like Canada and the United States drives Chinese companies to speed up acquisitions abroad.

Despite leading in mineral processing for lithium, cobalt, and rare earths, China still relies on many raw material imports. Meanwhile, Western governments actively diversify supply chains for metals used in EV batteries, wind turbines, and semiconductors. This geopolitical backdrop intensifies China’s effort to secure overseas mining assets. As a result, China aims to ensure stable access to strategic minerals.

China’s Gold-Fueled Mining Expansion and Strategic Acquisitions

Rising gold prices have fueled China’s mining ambitions further. Chinese producers, already the world’s largest gold miners, aggressively expand overseas. For example, Chifeng Gold increased production from 2 tonnes in 2019 to 15.2 tonnes in 2023. This growth covers operations in China, Ghana, and Laos.

Recent major acquisitions include Zijin Mining’s $1.2 billion purchase of Kazakhstan’s Raygorodok gold mine. Also, Baiyin Nonferrous Group acquired Brazil’s Mineração Vale Verde copper and gold mine for $420 million. These deals highlight China’s focus on securing diverse mineral assets amid constrained global supply growth. Moreover, competition with Western mining companies intensifies.

SuperMetalPrice Commentary:

China’s record overseas mining investment shows a strategic shift amid geopolitical uncertainty and supply chain changes. The rapid control of critical raw materials challenges Western diversification efforts. Market watchers should closely monitor how these deals affect global mineral flows and pricing. As tensions persist, China’s mining strategy will remain a key factor shaping commodity markets and resource security worldwide.