Home Market News Mining <!DOCTYPE html> <html> <head> <title>China’s Belt and Road Initiatives Fuel Record-High Mining Investments</title> </head> <body> CHART: China’s Belt and Road mining investment hits record

China’s Belt and Road Initiatives Fuel Record-High Mining Investments CHART: China’s Belt and Road mining investment hits record

0
<!DOCTYPE html>
<html>
  <head>
    <title>China’s Belt and Road Initiatives Fuel Record-High Mining Investments</title>
  </head>
  <body>
    CHART: China’s Belt and Road mining investment hits record

Last year witnessed Africa surpassing the Middle East as the prime destination for BRI projects, experiencing a staggering 114% surge in investments and a 47% increase in construction projects across the continent. Simultaneously, investments in Latin America and the Caribbean doubled, signifying the growing reach of China’s Belt and Road Initiative (BRI).

China’s Belt and Road mining investment hits record
Source: Griffith Asia Institute

A comprehensive study revealed that China’s BRI-related investment in metals and mining surged to an unprecedented $19.4 billion in 2023, marking a remarkable 158% escalation compared to 2022.

The minerals and metals investment sought to drive the green energy transition, with copper dominating the new project announcements last year. Significant spending also occurred in lithium, nickel, and uranium under the BRI umbrella.

Key mining investments were concentrated in Indonesia, multiple African countries, and South America, including a major new copper processing facility in Saudi Arabia.

For instance, the world’s largest battery manufacturer, CATL, acquired shares for a nickel mining concession in Indonesia from PT Aneka Tambang (Antam), signifying a strategic move towards vertical integration.

Furthermore, Chinese firms such as Jiangxi, Ganfeng, and Hainan Mining invested in lithium projects in Mali, while Zhejiang Huayou Cobalt commissioned a lithium processing plant in Zimbabwe, substantiating the depth of Chinese investments in the mining sector.

Simultaneously, downstream investment in battery and electric vehicle manufacturing witnessed a significant surge, totaling nearly $10 billion according to the report. Notably, CATL emerged as the largest investor under the BRI last year, accounting for more than 15% of the overall spending, followed by Zijin Mining at 11%.

Zhejiang Huayou Cobalt made a significant contribution of nearly 9% to the total investment, while CMOC (formerly China Molybdenum) and Minmetals each held a share of over 5% in the total BRI investments, which amounted to $92.4 billion in 2023.

The Griffith Asia Institute anticipates further expansion of Chinese BRI engagement in 2024, with a focus on country partnerships in renewable energy, resource-backed mining, and related technologies, including EV batteries.