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Jul 28, 2018


Industry News

How Chinese investment and pull increasingly drive our mining sector

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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