Cleantech, mineral security demand drive China miners’ overseas buying spree: MMG chair

Chinese miners have accelerated their investments in critical mineral projects overseas to support electric vehicle (EV) adoption and clean energy development, as Beijing seeks to secure more minerals amid geopolitical tensions.

“Our long-term strategy is focused on key technologies that promote a low-carbon future,” said Xu Jiqing, the chairman of Minerals and Metals Group (MMG), in an interview on Wednesday.

“China’s urbanisation is far from over and the global trend towards decarbonisation is growing, as well as the progress of electrification driven by EVs and renewable energy – we firmly believe in the long-term market demand for the types of metals MMG operates.”

The Hong Kong-listed company, backed by state-owned China Minmetals, last month said it would buy British miner Anglo American’s nickel business in Brazil, the third-largest nickel trove globally with about 5.2 million tons in reserves, for up to US$500 million.

The purchase would allow MMG to include in its portfolio nickel, a critical metal used in the manufacturing of solar panels, wind turbines and EV batteries, Xu said. It is also MMG’s first foray into Brazil.

The Brazil deal is the latest in a buying spree by Chinese mineral companies amid significant price slumps in lithium and nickel due to global oversupply.