China’s huge demand for raw materials, the world’s largest consumer of almost all minerals, means its mining companies have a long history of investing abroad. Analysts and investors believe the surge in deals in 2024, the highest since 2013, partly reflects Beijing’s efforts to get ahead of a worsening geopolitical climate.
China is buying up mines. Beijing has never made as many mineral acquisitions in the past decade as it did in 2024, when, according to an analysis by S&P and Mergermarket, the Dragon was the protagonist of 10 deals worth more than $100 million, the highest since 2013. Separate research by the Griffith Asia Institute found that last year “was the most active year for Chinese investment in mining and construction abroad since 2013.” This Chinese offensive to buy mines is not simply a battle for land or metals, but for XNUMXst-century economic power.
Lithium, cobalt, copper and rare earth metals are no longer just elements on the periodic table, they are the raw materials for green energy, electric car batteries, smartphones and advanced weapons. Control over these resources means control over the future. The reason? The Chinese government is reportedly closing deal after deal with the aim of securing control of the resources and raw materials that support the global economy in the face of growing geopolitical tension with the US and the West.
LAST AGREEMENTS
As the Financial Times explained, China’s huge demand for raw materials, the world’s largest consumer of almost all minerals, means its mining companies have a long history of investing abroad. Analysts and investors believe that the surge in deals in 2024, the highest since 2013, partly reflects Beijing’s efforts to get ahead of a worsening geopolitical climate. As Michael Scherb, founder of private equity group Appian Capital Advisory, explained, there has been “more activity in the last 12 months because Chinese groups believe they have this short-term window of opportunity. They are trying to do a lot of mergers and acquisitions before the geopolitical situation gets tough.”
“OCCUPANCY” OF THE MINES
The trend has continued through early 2025. One example? China’s Zijin Mining announced plans to buy a gold mine in Kazakhstan for $1.2 billion. In April, Appian sold its Mineracao Vale Verde copper-gold mine in Brazil to China’s Baiyin Nonferrous Group for $420 million. “We are likely to continue to see a healthy level of deal-signing activity from Chinese mining companies over the coming years,” added Richard Horrocks-Taylor, global head of metals and mining at Standard Chartered. This is in line with China’s shift towards high-tech manufacturing, including batteries and renewables, and reflects the fact that Chinese investors have become more sophisticated in their approach to global deals.
BEIJING’S STRATEGY
The argument is simple. China dominates the processing of most essential minerals, including rare earths, lithium and cobalt, but it must import many of the raw materials. On the other hand, the United States and many European countries are trying to reduce their dependence on Beijing for these metals, which are essential for everything from electric vehicle batteries to semiconductors and wind turbines, and develop alternative supply chains.
Among the most active Chinese mining groups in foreign deals are the aforementioned CMOC, MMG, and Zijin Mining. At the same time, Chinese financial institutions have provided billions of dollars in loans to finance mineral extraction and processing projects in developing countries. Several African governments have also sought to take control of Western mineral resources and demand higher royalties. Chinese companies are often willing to accept less lucrative deals in exchange for the opportunity to take over the management of the resources.