Sino-Minemet Seeks LatAm Mines

Sino-Minemet, a Chinese producer of metallurgical products, alloys and metals wants to expand its LatAm investments. It sees a growing need to invest in mines, instead of simply buying raw materials, Karl Liu, general manager tells LatinFinance. The company is in the process of signing an agreement to invest $20m in a copper mine in Brazil, a joint venture with an undisclosed Brazilian company, to which it has made a 10-year commitment. Sino-Minemet invested $10m in 2005 in a copper mine in Peru, for which it made a 15-year commitment, though this could be increased. Liu says the company seeks similar opportunities in Brazil, Chile and Argentina. “We are expanding our investment plans and are looking for the right partners so that we can invest in copper and manganese projects in Latin America,” says Liu. “Countries like Peru, Chile and Brazil have good relations with China, stable economic and political environments, growing economies and are rich in ores, so provide the best investment opportunities for us outside Asia.” Nearly 50% of the company’s copper comes from LatAm and 90% of the boric acid it buys is sourced in Chile and Peru. Liu expects the price of raw materials to increase in the long-term, and he does not expect any slowdown in Chinese demand for the processed metals which his company produces. He concludes that investing in mines as essential for the company’s growth. Sino-Minemet gets funds from private investors and bank loan, with 70% coming from the latter, in particular from China Construction Bank and China Merchant Bank.