INVESTING in Africa's mining industry is worth it for chinese companies, industry insiders say as geopolitical tensions rise and the US and its allies tighten control over key mineral resources, reports Caixin.
Despite its poorer infrastructure and challenging business environment, Africa was highly recommended as an investment destination by participants at last week's China Mining Conference and Exhibition in Tianjin.
Chinese mining and infrastructure companies were able to leverage their strengths to support their mining investments in the African market.
They could also cooperate to expand the African market to 'overcome local inefficiencies,' said Qi Ding, an analyst at China International Capital Corp.
Cheng Jun, a partner at Zhong Lun Law Firm, pointed out that some African countries have in recent years revised their mining laws.
However, he said these reforms are more focused on better capitalising on the overall rise in commodity prices rather than taking greater control over local mineral resources, so they will have little impact on mining investment for the time being.
SeaNews Turkey
Despite its poorer infrastructure and challenging business environment, Africa was highly recommended as an investment destination by participants at last week's China Mining Conference and Exhibition in Tianjin.
Chinese mining and infrastructure companies were able to leverage their strengths to support their mining investments in the African market.
They could also cooperate to expand the African market to 'overcome local inefficiencies,' said Qi Ding, an analyst at China International Capital Corp.
Cheng Jun, a partner at Zhong Lun Law Firm, pointed out that some African countries have in recent years revised their mining laws.
However, he said these reforms are more focused on better capitalising on the overall rise in commodity prices rather than taking greater control over local mineral resources, so they will have little impact on mining investment for the time being.
SeaNews Turkey
