Mining success abroad via M&A

From 2013 to 2018, sales revenue of Zijin Mining more than doubled, from 50 billion yuan to over 100 billion yuan. One of the reasons for its success was that it attached great importance to its go-global strategy, said Ye Kun, an independent business consultant and investment manager.

According to the company, in 2018, its operating income reached 106 billion yuan, up 12 percent. Its net profit surged by nearly 17 percent to 4.1 billion yuan. Total assets were worth 112.9 billion yuan, up 26 percent.

In the same year, overseas gold production was 19 tons, accounting for 52 percent of the total, while its overseas copper production reached 60,000 tons, taking up 24 percent of the total. Its overseas zinc production, which was 99,900 tons, accounted for almost 36 percent of the whole production.

"It is estimated that the production of its major products overseas will surpass that of the domestic market in the coming two to three years," Ye said.

Chen from Zijin Mining said that this year, the company must unswervingly adhere to the direction of international development, by accelerating the construction process of existing major overseas projects, and improving the overall management and operations, including at its overseas subsidiaries.

Chen said: "In addition, we will continue to hire or consult with international professionals. As the company's go-global process accelerates, international professionals become increasingly important to our development. We should work out an innovative mode of cultivating international talent, integrating domestic and overseas efforts.

"We are striving to make the overseas profit contribution surpass that of the domestic market in the next three years."

Xinhua contributed to the story.