Research On The "Going Out" Strategy Of China's State-owned Key Metal Mining Enterprises

Nowadays,the remarkable supply shortage of mineral commodity,especially for Iron and Copper,become a critical problem for the economic growth in China,and the increasing costs make the situation worse.In the next 10 to 15 years,up to 50%of industrial demand of iron and copper will depend on import,which makes it necessary the overseas investments of mineral industry for sustainable development of social economy.In order to meet the great demand for economic growth and seize the opportunity caused by global financial crisis,it is the time and mission for state-owned enterprises to go abroad for mineral investments.In addition,the great potential of mineral resources through the world and healthy domestic policy environments make it favorable for going out.Overseas investments have become an important component of open-style economy of China.However the main mineral resources world wide are under the control of several western mining giants,so the way of overseas investments is one of the difficulties for the government and enterprises to face and deal with.On the basis of analysis of national supply-demand situation of mineral resources,the history and present of national overseas investments of state-owned enterprises are summarized and concluded.Through SWOT analytical method,the motives and feasibility are analyzed in detail,with the conclusion of successful experiences and failure lessons.Under the opportunities and challenges facing those enterprises going abroad,strategies and associated advices are proposed as well.With a series of case studies,it comes to a conclusion that interactive support of the government and enterprises,taking reasonable strategy and tactics,localized management and operation,all those aspects above are the typical experience of success to overseas investments.Meanwhile,the failure of overseas investments leaves us a lesson:lacking a focus,lacking the experiences of avoiding sensitive issues and low public relations ability.By means of comparison and analysis of domestic and foreign mining companies for overseas investments,it is considered that overseas investments must have a clear motivation,optimized scheme and strategy of mergers and acquisitions.Through the SWOT analysis of the state-owned mining enterprises' overseas investments,it is considered that in the future,the strategy of overseas investments should layout mainly to resource-rich developing countries,especially surrounding countries.Latin American and African countries,taking into account resource-rich developed countries.On the mineral selections,it should focus mainly on the insufficient ores such as iron and copper.The strategy should be mainly by the way of acquisitions,renting and participation.At the same time,the application of strategy of overseas investments should be paid attention to.In the view of the overseas investments strategy of state-owned mining enterprises going out of the predicament,it is suggested that invested capital,personnel training,foreign affairs,risk monitoring media etc,should be supported with related policies,which will improve the process and dissolve risks and build management and service system,making sure of achievement of anticipated overseas investments.