It is reported that to speed up the strategy of going global and guarantee overseas mineral resources so as to enhance the economic and social development, seven state owned enterprises in Jiangxi Province jointly established Jiangxi International Mining Co Ltd on May 31.

With registered capital of CNY 30 million, JIM is controlled by Jiangxi Corporation for International Economic and Technical Cooperation and partner with Jiangxi Copper Cooperation, Jiangxi Nonferrous Metals Geological Exploration Bureau and other large state owned enterprises and institutions. The new joint venture will focus on exploration of offshore mineral resources.

Jiangxi is rich in some mineral resources, such as rare earths, tungsten, etc. Yet, many mineral resources are very scarce like tin and aluminum. Jiangxi International Mining Co Ltd is set up to ensure a comprehensive resource supply as well as to promote economic development.

Mr Yin Xiaojian a researcher from Jiangxi Social Sciences Academy reminds that there are still some political risks for Jiangxi mineral mining companies’ M&A overseas projects. Firstly, M&A assets are related to critical national interest and second are the issues related with of local residents and environment. So that kind of risks should be avoided and reduced.

He reckons that in 2011, Jiangxi mineral enterprises will encounter more powerful opponents which come from other emerging countries who are looking for more resources and also the challenges from internal. How to balance the interests of shareholders in the new company will be the core of the operation of JIM in the future.

(Sourced from MySteel.net)
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