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| China’s overseas mining investment |
China’s Record Overseas Mining Investment and Its Strategic Drivers
China’s overseas mining investment reached a new peak in 2024, marking the highest level since 2013. This surge reflects Beijing’s strategic push to secure critical raw materials amid escalating geopolitical tensions. According to data from S&P and Mergermarket, ten deals exceeded $100 million in value this year. Meanwhile, research from Griffith Asia Institute confirms that China’s mining investment and construction abroad have accelerated rapidly. China’s focus remains on metals vital to its industrial sectors, such as copper, gold, lithium, and rare earth elements. These materials underpin key industries, including electric vehicle (EV) battery manufacturing and semiconductor production.
Increasing Acquisitions Amid Rising Global Competition and Political Resistance
Chinese firms have intensified acquisitions in key mining regions like Kazakhstan and Brazil, driven by urgency to secure supply chains. Zijin Mining’s $1.2 billion purchase of the Raygorodok gold mine in Kazakhstan and Baiyin Nonferrous Group’s $420 million acquisition of the Mineração Vale Verde copper and gold mine in Brazil illustrate this trend. However, Western countries including Canada and the United States increasingly restrict Chinese investments in strategic sectors. As a result, China accelerates overseas acquisitions before political resistance tightens. This dynamic affects global scrap metal markets by shifting supply sources and creating new price pressures on raw materials critical to steelmaking and recycling industries.
Impact on Global Mineral Processing and Scrap Metal Recycling Industries
Although China dominates global mineral processing for lithium, rare earths, and cobalt, it remains highly dependent on raw material imports. This reliance drives China’s aggressive mining investments abroad. Western governments are simultaneously working to diversify supply chains away from China. This competition affects the scrap metal and recycling markets by influencing availability and pricing of base metals like copper and nickel. Furthermore, the surge in gold prices fuels China’s acquisition spree in precious metals, intensifying competition with Western miners. Consequently, global scrap traders and steel producers must navigate these shifting dynamics to optimize sourcing strategies and anticipate cost fluctuations.
ScrapInsight Commentary
China’s unprecedented overseas mining investment signals a strategic recalibration to secure raw materials critical for EV batteries and renewable energy technologies. This trend will likely tighten global scrap metal supplies, pushing prices upward in the near term. Policymakers must consider the implications for supply chain resilience and promote circular economy measures to mitigate resource dependencies.
