Shotgunner51
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World’s Largest Mining Investment Fund Is Bargain Hunting Again
Dave Forest
Oilprice.comJanuary 24, 2017
Tenke Fungurume Mining, Congo
China expanded its global reach again this past week. With the first-ever rail shipment of Chinese goods arriving in London, as part of a new Silk Road train route. And news yesterday suggests China is taking big leaps in resource finance as well.
That announcement came from China Molybdenum Company — the world’s largest moly miner. With the company saying it has an unusual new financial partner for its latest mine acquisition.
That follows China Moly’s purchase of a 56% interest in Tenke last May from Freeport-McMoRan. A deal that initially looked rocky after objections from DRC state mining firm Gecamines — but which has now reportedly been endorsed by the DRC government.
The Chinese miner bringing in BHR is a very interesting move. Representing one of the first forays we’ve seen for China-based private equity into the mining space.
BHR does have a Western flavor to it — having U.S. advisors Thornton Group and Rosemont Seneca (run by the son of departing U.S. Vice-President Joe Biden) as minority partners. And the investment group is getting a lot of support from China Moly, including financial guarantees for BHR’s $1.14 billion purchase price on the 24% Tenke interest.
But this shows private investment appetite for mining is rising in China. An observation supported by recent data from private equity analysts Preqin — who reported that Chinese backers are right now preparing the world’s largest mining private equity fund.
All of which suggests there may be a lot of money coming soon from China for mining deals. Watch for more private equity buys emerging from this part of the world, and for a completion announcement on funds like Power Capital’s.
Here’s to deep pools.
http://finance.yahoo.com/news/world-largest-mining-investment-fund-161000073.html
Dave Forest
Oilprice.comJanuary 24, 2017
Tenke Fungurume Mining, Congo
China expanded its global reach again this past week. With the first-ever rail shipment of Chinese goods arriving in London, as part of a new Silk Road train route. And news yesterday suggests China is taking big leaps in resource finance as well.
That announcement came from China Molybdenum Company — the world’s largest moly miner. With the company saying it has an unusual new financial partner for its latest mine acquisition.
Chinese private equity.
That follows China Moly’s purchase of a 56% interest in Tenke last May from Freeport-McMoRan. A deal that initially looked rocky after objections from DRC state mining firm Gecamines — but which has now reportedly been endorsed by the DRC government.
The Chinese miner bringing in BHR is a very interesting move. Representing one of the first forays we’ve seen for China-based private equity into the mining space.
BHR does have a Western flavor to it — having U.S. advisors Thornton Group and Rosemont Seneca (run by the son of departing U.S. Vice-President Joe Biden) as minority partners. And the investment group is getting a lot of support from China Moly, including financial guarantees for BHR’s $1.14 billion purchase price on the 24% Tenke interest.
But this shows private investment appetite for mining is rising in China. An observation supported by recent data from private equity analysts Preqin — who reported that Chinese backers are right now preparing the world’s largest mining private equity fund.
All of which suggests there may be a lot of money coming soon from China for mining deals. Watch for more private equity buys emerging from this part of the world, and for a completion announcement on funds like Power Capital’s.
Here’s to deep pools.
http://finance.yahoo.com/news/world-largest-mining-investment-fund-161000073.html