Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Zijin Mining Group Co., one of China’s most acquisitive metals groups and its biggest listed miner, warned that US-led efforts to tackle Beijing’s control of minerals could slow the company’s global expansion, warning that geopolitical tensions are “becoming increasingly grim”.
The attempted containment of China by developed nations was now commonly understood, and Zijin “will be targeted for sure” given its leading role in the industry and plans for more acquisitions, Chairman Chen Jinghe said on a media call on Monday. “The development of the Chinese economy and the Chinese mining industry is becoming more difficult,” he added.
Beijing’s dominant role in mining supply chains — especially in “critical minerals” vital in industries from electric vehicles to military hardware — has led the US and European Union to push for greater reliance on materials produced domestically or by friendly nations. That poses a risk to the growth of Zijin, which has bought copper and gold mines from Canada to Africa, and expanded into lithium in a bid to become a key player in the battery material.
Chen’s comments came after Zijin said on Friday that it planned to ramp up output of all its metals by 2025 through major acquisitions, including of “ultra-large mines or mining companies with global influence.” The company will remain active in its global development, despite “geopolitical tensions becoming increasingly grim,” Chen said Monday.
Zijin also delivered an outlook for its major commodities in its annual results. Here are some of the key comments:
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