beijingwalker
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'China is more than a decade ahead in the game,' warns resource expert
Michael McCrae Tuesday September 24, 2019 15:44
The U.S. senate was told that China dominates the supply chain for many metals that are necessary for the digital economy.
Allison Carlson, acting managing director for the Foreign Policy Group, gave testimony at the U.S. Senate Committee on Energy and Natural Resources.
China has a strategic objective to secure other countries' mineral reserves, even those where it is already dominant, said Carlson.
"The fall in metal commodities prices from 2011 to 2015 left many mining companies around the world desperate for capital," said Carlson in her testimony.
"By directly acquiring mines, accumulating equity stakes in natural-resource companies, making longterm agreements to buy mines’ current or future production (known as “off-take agreements”), and investing in new projects under development, Chinese firms traded much-needed capital for control or influence over large shares of the global production of these resources."
Carlson said China lacks significant reserves of cobalt, platinum-group metals, and lithium. It has used both state-owned enterprises and state-linked private firms in market-based economies to secure global sources.
"With few governments having articulated, let alone implemented, an explicit resource strategy, China is more than a decade ahead in the game."
For example, Carlson said China enterprises have targeted debt-stressed mining companies and secured equity shares and influence over a majority of its mines in the DRC.
Carlson recommended a fundamental rethink of how countries invest in strategic industries. She also said there should be "...intensified focus on industrial and post-consumer minerals recycling and robust investments in materials science R&D could help reduce dependence on extraction, mitigate supply chain vulnerabilities."
https://www.kitco.com/news/2019-09-...-ahead-in-the-game-warns-resource-expert.html
Michael McCrae Tuesday September 24, 2019 15:44
The U.S. senate was told that China dominates the supply chain for many metals that are necessary for the digital economy.
Allison Carlson, acting managing director for the Foreign Policy Group, gave testimony at the U.S. Senate Committee on Energy and Natural Resources.
China has a strategic objective to secure other countries' mineral reserves, even those where it is already dominant, said Carlson.
"The fall in metal commodities prices from 2011 to 2015 left many mining companies around the world desperate for capital," said Carlson in her testimony.
"By directly acquiring mines, accumulating equity stakes in natural-resource companies, making longterm agreements to buy mines’ current or future production (known as “off-take agreements”), and investing in new projects under development, Chinese firms traded much-needed capital for control or influence over large shares of the global production of these resources."
Carlson said China lacks significant reserves of cobalt, platinum-group metals, and lithium. It has used both state-owned enterprises and state-linked private firms in market-based economies to secure global sources.
"With few governments having articulated, let alone implemented, an explicit resource strategy, China is more than a decade ahead in the game."
For example, Carlson said China enterprises have targeted debt-stressed mining companies and secured equity shares and influence over a majority of its mines in the DRC.
Carlson recommended a fundamental rethink of how countries invest in strategic industries. She also said there should be "...intensified focus on industrial and post-consumer minerals recycling and robust investments in materials science R&D could help reduce dependence on extraction, mitigate supply chain vulnerabilities."
https://www.kitco.com/news/2019-09-...-ahead-in-the-game-warns-resource-expert.html
