https://www.miningweekly.com

China’s race for resources positive for Africa

25th January 2013

By: Yolandi Booyens

  

Font size: - +

China’s race for resources is a considerable opportunity for Africa as it needs significant investment and has a young population, says economist and author Dr Dambisa Moyo.

Moyo will be a keynote speaker at the 2013 Investing in African Mining Indaba, which will take place at the Cape Town International Convention Centre from February 4 to 7. Her address will focus on China’s race for resources and what it means for the world.

She notes that 60% to 70% of Africans are under the age of 25; therefore, Chinese investment should be seen as a welcome strategy to help uplift and grow the African economy.

“There are significant advantages for African economies in engaging with China from a trade perspective, job creation and in terms of investment.”

However, governments need to be savvy when managing investment flows and should recognise that China is particularly interested in assets that are scarce, finite and depleting. Therefore, a balance between the consumption and conservation of these resources should be maintained, Moyo points out.

The issue around commodity scarcity is global, she notes, stressing that Africa is not the only continent faced with this challenge.

Discussions on commodity scarcity, which include weighing demand increases for resources against the ability of mining companies to supply these resources, are being debated worldwide.

“The Mining Indaba is a great platform to have this discussion and to assess the impact that China has on the world and the potential the Asian country holds for investors and mining companies,” Moyo states.

It is not just about Africa but also about the broader campaign China has embarked upon to secure natural resources, as she notes that China is a premier buyer of many resources, with an estimated one-billion-dollar-a-week spend on outside investments since 2005.

China’s foreign takeover of Calgary gas producer Nexen, which was approved by the Canadian government on December 9, has moved Chinese State-owned company China National Offshore Oil Corp (CNOOC) another step closer to securing the deal.

“This is the most significant overseas investment ever made by a Chinese company,” says Moyo.

The Nexen deal was originally announced in July 2012, with Nexen shareholders approving the $15.1-billion deal in September.

Further, Moyo notes that events such as the Mining Indaba assist in the growth of a global mining industry.

She adds that her speech is aimed at mining companies and investors with an interest in the macroeconomic dynamics and commodity pricing dynamics of resource demand and supply between China and the world.

China’s performance and behaviour in global markets and its metals-buying trends are important in determining commodity prices in future.

“Investors aiming to enter the com-modity markets need to know who the key players are,” Moyo emphasises.

“It is important for African businesses to continue pursuing a strategy to form part of a global discourse – such as Brazil, Russia, India and China – or other emerging markets or developed economies. “African businesses need to step up and mature to the point where they are engaging with those networks.”

The Indaba is a great opportunity for African engagement on a global scale, Moyo concludes.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Latest Multimedia

Photo of Martin Creamer
On-The-Air (01/03/2024)
Updated 3 hours ago By: Martin Creamer

Showroom

Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
Gold, carbon emissions, renewable projects make headlines
Updated 6 hours ago
Magazine video image
Magazine round up | 01 March 2024
1st March 2024
Implats CEO Nico Muller
Implats expecting phased reduction in group output
29th February 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.17 0.206s - 91pq - 3rq
Subscribe Now