|Willingness to fund infrastructure development will provide a competitive advantage for Chinese companies seeking to invest in mining assets in regions like Africa and Latin America, Ernst & Young said Monday.
|Mike Elliott, the leader of Ernst & Young's global mining and metals sector, said Chinese companies dominated the mining and metals transactions market in 2009, and he predicted the competition for assets in 2010 will be much higher.
|Last year, many of the investments were in developed countries. For instance, the assets based in Australia, Canada and the United States accounted for 44 percent of all global transactions.
|"This year, global investor focus begins to turn to regions with more perceived political risk," Elliott told China.org.cn.
|"Mining asset prices in the lowest risk regions have been bid up, which means assets in some of the higher risk, new mineral provinces are good value buying for the risk they represent. And this provides a great opportunity for Chinese companies looking for lower cost assets," he said.
|Statistics from Ernst & Young indicate that from 2000 to 2009 the number of Chinese dominated transactions reached 370 and were worth US$50 billion.
|Last year, the global trading volume increased to more than US$60 billion while China accounted for 27 percent of the gross.
|"China spearheaded the emergence of new capital providers," Elliott said. "Chinese enterprises have the cash and the need to launch an aggressive bid for mining and metal assets."