China is the worlds secondlargest economy and is also the largest exporter and secondlargest importer of goods in the world. In 2010, the Chinese mining industry was valued at US328 billion and is expected to expand at a CAGR of 4% during the forecast period. Key user markets such as construction, manufacturing, steel and power will continue to drive demand for mineral products. In the fuel mineral category, coal production improved significantly over the review period and accounted for 75.8% of Chinas entire mining industry in 2010, while iron ore dominated the metallic mineral category, accounting for 21.9% of the category in 2010. The nonmetallic mineral category is dominated by salt, gypsum and rock phosphate, which jointly hold an 80% market share.
The Chinese Government has been encouraging and attracting foreign and domestic investors into the countrys mining industry by implementing various regulatory changes, incentives and tax policies. As per the current regulatory framework, foreign investment enterprises and domestic companies received equal consideration for both exploration and mining rights. The Chinese mining industry is characterized as highly fragmented and a multitude of small companies compete in the market. It is anticipated that the mining industry is ready to move into the consolidation phase as the government has encouraged M&A deals by incentivizing small firms for any M&A activity. |
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