China Goes on a Mine Buying Spree

Christopher Murray

May 18, 2011

by Tracy Tjaden, The Globe & Mail

... Armed with trillions in foreign reserves and a mandate to secure natural resources around the world to feed its insatiable domestic engine, the Chinese are on the prowl for deals. And Canadian mining companies may soon be experts in striking them.

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From copper to molybdenum to potash, China is now one of the world’s largest importers of metals and minerals as it struggles to keep up with economic growth from its rapidly expanding middle class. In addition, its huge manufacturing sector supplies corporations around the world.

Industry experts say the Canada-China relationship will only deepen.

“Canada is a great incubator for mining exploration and early-stage mine development, but it takes tremendous capital and investment in R&D to move to the next stage and develop a mine,” says Christopher Murray, an M&A lawyer at Osler, Hoskin & Harcourt LLP and head of its China practice. “China can come in and do that. They come in with a much-needed infusion of capital when many of our companies top out.”