Research On Risk Control Of Overseas Investment Of Mining State-owned Enterprises

Mineral resource is the important pillar of the national economy development and the foundation of national modernization and industrialization.Mineral resource is a kind of non-renewable resource,disorderly excessive consumption will restrict the country's future development.Although our country is rich in mineral resources reserves,but the huge population base makes China on the low level for per capita hold of mineral resources.And highly mineral import dependence can make the country in a passive state.With the advancement of industrialization in our country,the domestic mineral commodity market supply is insufficient.So investment for overseas mineral resources is the necessary way.From the implementation of "Two markets Two resources" strategy and "Going abroad strategy " to "the Belt and Road Initiatives" strategic proposed by Xi Jinping general secretary,China's mineral industry overseas investment has experienced rapid development.Great results at the same time,there are many failed lessons.In the large foreign investment team,state-owned enterprises rely on the strong strength and resource advantages,becoming the main force of overseas investment.State-owned enterprises have played an important role in developing national strategic resources and stabilizing prices.However,the complexity of overseas investment environment and the instability of international economic situation have brought great risk challenges to state-owned enterprises.A large number of mergers and acquisitions fails and investment losses emerged.That makes us aware of the importance of mining foreign investment risk control.The main contents and ideas of this paper are to describe and analyze the current situation of China's state-owned enterprises in foreign investment and their risk control.Based on the relevant theoretical basis of overseas investment and risk control,the author makes a comprehensive and detailed analysis of the risk sources of overseas investment.It analyzes the external investment environment faced by the investment enterprises,the internal risk factors of the state-owned enterprises and the special risk factors of the mineral industry.And then select a typical successful investment case that the Minmetals Group successfully merged Australia OZ mining and a failing investment case that Aluminum Corporation of Chinaunsuccessfully merged Mongolia South Gobi Resources,analysis of the risk points and response measures which the companies faced under that situation.Then the author summed up the experiences.Finally,the policy recommendations of the double-level risk control system are put forward for the foreign investment of state-owned enterprises.From the macro level and micro level,our government should establish a sound and effective risk control system.