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Jul 28, 2018


Industry News

How Chinese investment and pull increasingly drive our mining sector



The world’s most insatiable consumer digs deep into Canadian miners

After spending billions of dollars and two decades trying — and failing — to build a mine on the border of Chile and Argentina, Toronto-based Barrick Gold Corp. is reverting to a predictable strategy: it wants to partner with a Chinese company.

Earlier this month, the largest gold miner in the world announced that it asked Shandong Gold Group Co. Ltd, a smaller, younger, less well-known state-owned Chinese company, to study whether its long-delayed Pascua-Lama mine could be economically built if the Chilean part of the deposit were left in the ground — something Barrick’s own geologists and engineers thus far have not justified to management


Across Canada, as mining companies have struggled to raise money, many have turned to Chinese, often state-owned, companies, which have evolved from a source of capital into various types of partnerships and leadership roles. Many mining executives see these relationships as a key to future growth and vital to meet their financing needs, noting China is the world’s most insatiable commodity consumer