Chinalco: China resource industry sees opportunity amid global crisis

Special Report:Global Financial Crisis

BEIJING, Jan. 2 (Chinese media) -- Some Chinese mineral giants

see the global economic slowdown as a blessing in disguise.

"The crisis presents a rare opportunity for our domestic companies to

initiate cooperation with foreign enterprises," said Xiao Yaqing, general

manager with state-owned Aluminum Corp. of China (Chinalco), in an outlook for

Caijing Magazine's 2008 yearbook.

"When the time is ripe, overseas acquisitions, strategic investments and

joint development could all be considered."

Statistics from the December issue of Caijing showed that 2008 has seen a

leap in the number of overseas acquisitions by China's metal, mining and energy

companies. These include share purchases and exploration licenses.

Seven transactions were completed and three remain in progress. There were

five such cases in the past three years. About 10 major nonferrous metal

companies, including Chinalco, are considering further overseas mergers and

acquisitions.

The acquisition strategy was in line with the government's policy to

encourage state-owned companies to invest in foreign mining companies to secure

mineral resources.

According to Xiao, China's material and energy enterprises should have a

role in global resource allocation.

"We have long been providing products to other countries with our own

natural resources. Now it's time to contribute to the world economy with world

resources," he said.