Fitch Report Foresees Notable Re-Investment by Chinese Mining Industry

SEATTLE (Scrap Monster): The new report published by Fitch Solutions highlights the chances of China moving ahead with substantial re-investment in mining industry post-Covid-19. The proposed move could help the country re-establish and boost its resource base, by re-igniting its supply chain.

According to Fitch, the country is likely to focus more on increasing exploration and development of minerals. Additionally, it could see increased investment in technology in order to achieve profitability in mineral production. The country may likely revise its 13th Five-Year Plan by including mining as part of primary industries. The research company expects acceleration in mining investment under the Belt and Road Initiative (BRI) over the next five years.

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The investment appeal of Sub-Saharan Africa (SSA) to Chinese firms will see improvement. The report forecasts diversifying away from Australia, which had accounted for almost 40% of the country’s total mining imports during the previous year. Fitch foresees increased investments by Chinese mining firms in countries in the Democratic Republic of the Congo, Zambia, Guinea, South Africa and Ghana. However, weaker economic prospects, mainly on account of Covid-19 pandemic, will present huge challenges to Chinese investments.