Research and Markets: China Mining Report Q3 2009 Reveals in 2008, China Became the World's Largest Supplier of Gold, Surpassing South Africa

DUBLIN--(Business Wire)--Research and Markets(http://www.researchandmarkets.com/research/e8067a/china_mining_repor) hasannounced the addition of the "China Mining Report Q3 2009" report to theiroffering. The China Mining Report provides industry professionals and strategists,corporate analysts, mining associations, government departments and regulatorybodies with independent forecasts and competitive intelligence on China's mining industry. The People's Republic of China (PRC) is a natural world leader in terms of bothreserves and the production of several metals and minerals. It joined the WTO in2001, and has since become an economic force to be reckoned with, doubling itsmanufacturing output and in the process accumulating over US$1trn of foreignexchange reserves. Endowed with abundant mineral wealth, the country leads inthe production of copper, coal and aluminium. Further, its 1,200 gold minesposition it fourth in terms of gold production worldwide a metal of which it isalso the world's third-largest consumer. China is also in the fortunate positionof being cash rich at a time when many mining companies around the world arestruggling to locate financing. So, in recent months, Beijing has been veryactive in buying up Australian mining assets.We examine this phenomenon indetail on page 8 of this report. The national government is taking active steps to make the mining industry morecompetitive. Although it is a communist state, China introduced market reformsin the 1980s and today only about a third of the economy is directlystate-controlled. The government is encouraging mergers and acquisitions (M&As)as a means of ensuring optimal use of mineral resources, and barriers to foreigninvestment are gradually being done away with. The Chinese mining industry as a whole is suffering from the global financialcrisis and the collapse in commodity prices. Yet the recovery of the domesticand international mining sector will be due, in part, to the success of China'sCNY4trn fiscal stimulus package. This should include investment in railroads,airports and power generation in 2009-2011, which will help drive demand forsteel and other commodities. The government has also pledged to spend CNY900bnon affordable housing in the same period. It is estimated that these measureswill boost demand for steel by as much as 150mn tonnes a year, which will helpstimulate demand for iron ore. Meanwhile, predictions that Chinese steel companies will be able to force a30-40% drop in iron ore prices in 2009 look optimistic. Falling prices areforcing many Chinese ore miners out of business, while smaller internationalminers are having to reduce production. Therefore, just when China thought itwas in a strong position to bargain with the major mining companies, it hasfound itself more reliant on them than ever. At most, industry watchers expect acut of 20% in iron ore prices, after negotiation. Industry Forecast : In 2008, China became the world's largest supplier of gold, surpassing SouthAfrica. China is also implementing its 11th Five-Year Plan (2006-2010), whichemphasises securing the economy's future metals and minerals resource needs. Thefocus is on further geological exploration of mineral reserves and increasingthe supply of mineral products to fuel China's rapid economic expansion. Onearea where China is especially keen to increase its reserves is uranium. Withthe country looking to rapidly increase its nuclear power generation, thegovernment is seeking to secure a stable supply of raw materials. Uraniumexploration is concentrating on Inner Mongolia and north-west China. The reportforecasts the mining industry GDP in China to grow at 13.26% per annum in2008-2013, reaching US$474bn by 2013.