• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 4 hours Let's shut down dissent like The Conversation in Australia
  • 13 hours Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 6 hours Saudis Confirm a Cruise Missile from Iranian Origin
  • 29 mins Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 8 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 hours Donald Trump Proposes Harnessing Liberal Tears To Provide Clean Energy
  • 12 mins One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 5 hours Saudis Buying Oil From Iraq
  • 1 hour Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 12 hours Trump Accidentally Discusses Technology Used In The Border Wall
  • 23 hours Democrats and Gun Views
  • 22 hours China Faces Economic Collapse
Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

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