A couple of months ago MetalMiner reported on a recent investment by Jinchuan, a Chinese state-owned mining company who took a 51% stake in Wesizwe, a junior South African platinum developer. As we have reported, Chinese state-owned producers and mining concerns have taken an aggressive approach to acquiring key raw materials and assets throughout the world for a range of materials from copper to iron ore to steel. And though the reasons behind the acquisitive policies (if you can call them that) remain sound after all anyone can see the logic in China needing to shore up key raw materials as it continues to progress along its industrialization curve, these moves are not without controversy.
We see the key issues as whether or not a state-owned entity ought to be permitted to buy into a non-state owned entity; if the practice is allowed (as it is in some countries and even has happened in the US) shouldn’t US public or private companies have the same rights to buy into Chinese state owned entities? But we’ll save that debate and discussion for another forum.
In the meanwhile, here is Stuart Burns on the BBC World Update from August 24: