[Marxism] Mining mergers and China
Paula_cerni at msn.com
Thu Nov 29 18:22:58 MST 2007
"Today BHP, already the world's largest mining group, now wants to create an even greater behemoth through a merger with the Anglo-Australian group, Rio Tinto, another massive mining company.
"Out of this would become a group with a market capitalization of more than US$350 billion and unprecedented production strength, if not dominance, in a host of important mineral and energy commodities from mines and plants in more than 25 countries - iron ore, bauxite, aluminum, copper, nickel, titanium, cobalt, manganese, lead, zinc, gold, silver, diamonds, uranium and coal. (BHP also has petroleum interests, which, while significant, are not large in multinational company terms).
"For the world's major buyers, led now by China's steel mills and other processing plants, powering the country's industrial juggernaut, the possibility of a BHP-Rio merger raises fears of a supplier with such market power that it can dictate prices and contract terms.
"What we will see is China's mining companies, backed up by China's state banks, scrambling further to gain alternative sources of mineral supplies particularly in Africa and Central Asia where they have already been busy staking out positions."
Full text http://www.atimes.com/atimes/China_Business/IK30Cb02.html
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