• 4 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 10 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 13 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 3 hours More dumbed down? re Hong Kong Act of Congress
  • 3 hours U.S. Shale Output may Start Dropping Next Year
  • 27 mins U.S. Shale To Break Records Despite Bearish Rhetoric
  • 24 hours EU has already lost the Trump vs. EU Trade War
  • 4 hours Winter Storms Hitting Continental US
  • 17 mins Petroleum Industry Domain Names
  • 4 hours Aramco IPO magic trick
  • 1 day Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
  • 22 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 24 mins The 5 Scary New Rules Of Upside-Down Capitalism
  • 5 hours Crazy Stories From Round The World
  • 23 hours PennEast Appealing Wacky 3rd Circuit Decision to Supreme Court
  • 1 day Article: Did Exxon only make $39 Million onshore U.S. last quarter ?
  • 22 hours China 2019 - Orwell was 35 years out
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Does This Emergency Move Mean Trouble In China's Mining Sector

Very interesting reports emerging from China’s mining sector late last week. Suggesting that the sector is struggling with some major issues, and needs serious help in moving forward.

The biggest problem is debt. With sources suggesting that the country is about to take unprecedented action in dealing with money owed by some of the biggest national mining firms.

Bloomberg quoted people familiar with the matter as saying this will take the form of a state-owned fund to absorb bad mining debt. Including debts owed by some of the highest-profile Chinese companies working overseas. Related: Oil Industry Cutting Again, But It Still Might Not Be Enough

Sources said the new fund will be established by the State-Owned Assets Supervision and Administration Commission. And will aim to take on existing debt from across the mining industry.

Familiar persons singled out China’s largest metals trader, Minmetals, as one of the companies likely to see debt taken off its books. With the mega-firm currently owing about $9.3 billion to debt holders.

That’s a point that should be of interest for the mining investment community around the world. Given that Minmetals’ 74%-owned subsidiary MMG is an important player in international projects in Australia, Canada, Peru and Laos. Related: How Far Will Oil Sink Before Christmas?

All the more so because China’s creation of the debt fund suggests the government here sees miners being stretched right now in terms of finances. (Not surprising, given the recent fall in metals prices — and the aggressive investments in new projects made by Chinese companies the last several years.) 


The hope is the fund will head off serious problems with these firms, ensuring that operations can continue without major interruption. Related: Tesla’s License Plate Mystery Debunked

If the plan goes smooth, we may not see much fallout on the local or international stage. But this development does suggest investors should be keeping an eye on China-related ventures for any signs of financial strain.

It also makes it likely that many Chinese companies will be more careful in new investments going forward. Potentially meaning less capital coming out of this part of the world for minerals development.

Here’s to going off the books

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play