China's Mining Industry on the Way to Recover due to the Silk Road Fund

Chinas-Mining-Industry-on-the-Way-to-Recover-due-to-the-Silk-Road-Fund.jpgChina’s mining industry will receive important funding from the Silk Road Fund in an attempt to revitalize this industry and make it an important sector for investments. The Fund’s leaders have recently decide that they can participate to the mining industry in an effective way. Companies in the mining field will be given an opportunity for consolidation and eventual mergers and acquisitions.

The mining industry

The mining industry in China has been battling low funding but now companies are given a new opportunity for development. Once the Silk Road Fund will externalize the promise funding, mining companies in China will be able to have access to better collaboration opportunities and make other strategic business moves like mergers and acquisitions. Mining is an industry that requires a large amount of capital in all its areas and production cycles. This is why officials from the Silk Road Fund have guaranteed that their involvement will be effective and efficient.
The mining and metal industries will benefit from this capital boost and the involvement of the fund. The help will be focused on market-oriented operations and the investments will be mid and long-term.
China is an important global producer of coal, gold and rare earth minerals. The industry is fragmented, with numerous companies operating in the same mining area.

The Silk Road Fund

The Silk Road Fund is an investment fund owned by the Chinese Government. Its purpose is to increase investment and connectivity in countries across Asia. This route is the same as the ancient Silk Road trading routed used to carry goods and treasures between China and the Mediterranean. China’s initial investment in this fund was of 40 billion US dollars. The Fund offers support in a number of key areas like infrastructure construction, oil and gas or new energy. Mining and metal industries are also being added to the list of supported areas.
The experts at our law firm in China can give you detailed information about the investment potential in this field and also the corresponding legislation for foreign investments in mining in China.