KPMG Industry Updates - Issue 1, January 2013
Because of its capital intensive structure, vulnerability to market fluctuation, and geopolitical sensitivities, the overseas mining sector requires strong operational capabilities and contains high levels of risk. Although it has been a major sector for Chinese overseas investment in recent years, it has witnessed great difficulties as well. Chinese investors usually are not prepared to deal with the challenges properly. They should begin with adequate due diligence, be flexible in structuring deals, and tap and develop talent with international skills so that they can succeed in global mining operations.