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Rapidly depleting resources and permission to build businesses at scale are some of the reasons Chinese miners are making so many acquisitions, said Scott Trebilcock, CEO of KORE Mining.
Tebilcock joined Kitco's Michael McCrae and Mining Journals' Paul Harris on Friday for a discussion of major mining news of the week.
In a research piece from last week Haywood noted that there have been four acquisitions backed by Chinese entities this year, and three within the last three months. Deal highlights are Zijin coming out on top to acquire Guyana Goldfields at $323 million. There is also Shandong attempting to buy TMAC for $230 million.
Trebilcock said Chinese miners are being driven to look for ounces outside China.
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"Many of the known deposits are being depleted," said Trebilcock.
"And then finally, we've seen reforms in the last five years in China that have allowed the larger companies to list their shares internationally and get out from under the centralized control. That's freed up this well-capitalized large group of companies driven by shareholder interest for growth."
By Michael McCrae
For Kitco News
