Fu Shuixing, vice president of Beijing Institute of Mineral Geology, analyzed the situation of mining investment in Latin America.
Latin America has good natural conditions, a relatively stable political environment, and abundant iron, copper, aluminum, gold, silver, lithium, tin and other mineral resources. Meanwhile, the mining investment in Latin America is highly open to foreign investors and has relatively low entry conditions. All laws and regulations are relatively sound and a comprehensive policy of opening to the outside world is adopted to attract foreign investment. In principle, the mining industry is supported by laws, regulations and markets The development of supporting services and facilities are more complete, is conducive to foreign companies invest in geological prospecting and development activities. In recent years, the entire Latin American region is an important investment zone for listed mining companies. Our country's enterprises have many successful mining investment cases in Latin America.
However, in the process of investment, several issues that are easily overlooked by Chinese SME mines when investing in due diligence in Latin America: First, they can not assess whether the mines have the value of exploitation by domestic standards; secondly, they neglect the issue of destroying the cultural relics of indigenous peoples; third, Community members strongly oppose the mining problem, the fourth is the water rights in arid desert areas, and the fifth one is the language risk in the agreement.
Fu Shui Hing suggested that China's enterprises to invest in Latin America, to do a full-scale professional due diligence; to find out what the mine, what type of mine to find, to find the size of the mine, to regularly evaluate whether the investment objective still exists; Clear profit model; capital market is to spread the risk of preventing an important means of financial chain rupture.
