Chinalco says mining boom has decades to run
In words that will comfort Australia's massive iron ore export industry, Chinalco boss Xiong Weiping said about 52 per cent of Chinese people lived in urban areas and that rate had been increasing about 1 per cent each year.
"Based on this speed, urbanisation will continue to boost China's domestic demand for at least 30 years before it reaches the rate of 80 per cent," he said.
Speaking at a Melbourne Mining Club event in Beijing, Mr Xiong said China's demand for minerals had traditionally been higher than the nation's overall economic growth, which meant demand for minerals and commodities should be stronger than the expected growth rate of 7.5 per cent in coming years.
"If China's future GDP growth stands at 7.5 per cent, the growth rate of China's demand for minerals will be above 7.5 per cent," he said.
"It's worth mentioning that China will enter a key stage of accelerating industrialisation and urbanisation in the next 10 years and even longer, when the demand for mineral resources will continue to be strong.
"All international mining companies should grasp these rare opportunities in China's mining industry and make the best of it."
The comments come after a year of debate in Australia about the mortality of the "China mining boom", with some such as former prime minister Kevin Rudd declaring the lucrative phase to be over.
Others such as BHP Billiton boss Andrew Mackenzie have argued that Asian demand for commodities will remain strong for decades, and Australia can continue to profit from it so long as it improves productivity and its industrial relations system.
While China is a huge buyer of all minerals and commodities, it dominates the iron ore trade, which ranks as Australia's most lucrative export industry.
Strong urbanisation rates are typically a good sign for iron ore exporters, as it suggests ongoing demand for steel ingredients to build apartment towers, railways and bridges.
Chinalco is the biggest shareholder in Rio Tinto, whose chief executive, Sam Walsh, said the company's relationship with Chinalco was "now the strongest it has ever been".
"The Chinalco group is no longer just a shareholder; it is now one of our most important business partners," he said.
The two companies have agreed to set up a joint venture that will seek to develop the next era of mining technology.
Frequently Asked Questions about this Article…
According to Chinalco's boss Xiong Weiping, China's demand for minerals is expected to remain strong for at least the next 30 years due to ongoing urbanization and industrialization. This demand is anticipated to grow at a rate higher than China's GDP growth, which is projected at 7.5%.
According to Chinalco's boss, Xiong Weiping, China's demand for minerals is expected to remain strong for at least the next 30 years due to ongoing urbanization and industrialization. This demand is anticipated to grow at a rate higher than China's GDP growth, which is projected at 7.5%.
China's urbanization, which is increasing by about 1% each year, is a key driver of mineral demand. As more people move to urban areas, the need for infrastructure like apartment towers, railways, and bridges grows, boosting demand for minerals such as iron ore.
China's urbanization, which is increasing by about 1% each year, is a key driver of mineral demand. As more people move to urban areas, the need for infrastructure like apartment towers, railways, and bridges grows, boosting demand for minerals such as iron ore.
Iron ore is Australia's most lucrative export industry, largely due to China's dominance in the iron ore trade. The strong urbanization rates in China suggest ongoing demand for steel ingredients, which is beneficial for Australian iron ore exporters.
Iron ore is Australia's most lucrative export industry, largely due to China's dominance in the trade. Strong urbanization rates in China suggest ongoing demand for steel ingredients, which benefits Australian iron ore exporters.
Chinalco is a major player in the global mining industry and is the biggest shareholder in Rio Tinto. The company is not just a shareholder but also a significant business partner, collaborating on developing the next era of mining technology.
Chinalco is a major player in the mining industry and the biggest shareholder in Rio Tinto. The company is not just a shareholder but also a crucial business partner, collaborating on joint ventures to develop new mining technologies.
The relationship between Chinalco and Rio Tinto is described as the strongest it has ever been. They have agreed to set up a joint venture to develop new mining technologies, which could enhance productivity and innovation in the industry.
The partnership between Chinalco and Rio Tinto is described as the strongest it has ever been. This collaboration allows both companies to leverage each other's strengths and work together on developing the next era of mining technology.
China's economic growth, projected at 7.5%, implies that the demand for minerals will grow at an even higher rate. This is due to the country's ongoing industrialization and urbanization, which require substantial mineral resources.
China's economic growth, projected at 7.5%, implies that mineral demand will grow at an even higher rate. This is because China's demand for minerals has traditionally outpaced its overall economic growth, driven by urbanization and industrialization.
International mining companies are encouraged to seize the opportunities presented by China's strong demand for minerals. By aligning with China's growth trajectory, these companies can benefit from the sustained demand for mineral resources.
International mining companies have significant opportunities in China due to the country's strong and sustained demand for mineral resources. Companies are encouraged to capitalize on these opportunities by engaging with China's mining industry.
There has been debate in Australia about the longevity of the 'China mining boom.' While some, like former Prime Minister Kevin Rudd, believe the boom is over, others, including BHP Billiton's Andrew Mackenzie, argue that Asian demand for commodities will remain strong for decades.
The debate about the 'China mining boom' has led to differing opinions. While some believe the boom is over, others, like BHP Billiton's boss, argue that Asian demand for commodities will remain strong for decades, suggesting continued profitability for investors.
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