中国矿业投资政策与机会(中国投资峰会)分析

1、www.EmpireCPolicy and Opportunity- China Mining and metals industry Roy Penn, Ph.D, CIO Empire Capital Management Oct.20th,2011www.EmpireCPolicy and OpportunityGovernment policy updates and expectations on the future industry regulations；Evaluation of Chinas long term resource acquisition strategy ;

2、Current status of Chinese outbound investment deals and acquisitions The efficient way to invest in China s domestic mining market;The new way to invest in global mining market with China companies www.EmpireCGovernment policy updates and expectations on the future industry regulationsIndustry integ

3、ration(M&A),especially coal industry and rare earth industryNatural resources tax collection method changes from the amount levied to Ad valorem ( based on market price). SPRC strategic reserves management (Chinas copper inventories were 1.9 million metric tons at the end of 2010)www.EmpireCEval

4、uation of Chinas long term resource acquisition strategy From import commodities to buy mine equityFrom buy mine equity to start joint venture to mine and importDiversification from traditional areas to Africa and Central Asiawww.EmpireCCurrent status of Chinese outbound investment deals and acquisi

5、tions During last 10 years, China cost 50 bln USD to buy 370 mines.CIC is going to invest about USD300 million in a Mongolian iron ore mine.Mongonlia TT coking coal mine(1.8bln tons,40% share) by Shenhua Group.Chile iron mine(76% share) by a Guangdong company.Australia RML sold $ 800 million price o

6、f its African coal project and the companys 40% share to a Wuhan Company. www.EmpireCOpportunities in China domestic mine industryLiquidity control by PBoC pushes miners seek capital from bank loan to PE fund.Resources integration policy adds M&A opportunity in the industry, especially coal mine

7、rs.Higher oil price makes coal which China has huge reserves be an economical substitute.www.EmpireCThe efficient way to invest in China s domestic mining market The traditional way is foreign investor acquires a mine in China ,including through JV, and waits for time-consuming government permission

8、.Now he can join a China based PE fund as a qualified foreign limited partner (QFLP).At present, the QFLP quota is only 6 bln USD, of which Empire Capital (Empire Mine Fund) has 1 bln USD.www.EmpireCThe new way to invest in global mining market with China companies The traditional way is foreign inv

9、estor buy a mine outside of China with a Chinas company at the same time and the same price.Now he can use a small amount of capital to inject the miner and make the mine more mature for Chinas State-owed companies, including CIC, to buy at a higher price.Chinas State-owed companies can ask policy b

10、anks to give leverage loan to close the deal.www.EmpireCWho is Empire Capital?Empire Capital Management LLP is a global asset management company with three major business lines: hedge fund, private equity fund (PE) and investment consulting. Dr. Roy Penn (Peng Junming) is the founding partner and Ch

11、ief Investment Officer of Empire Capital. With almost 10 years of investment experiences in two of the most prestigious investment institutions in China: State Administration of Foreign Exchange (SAFE) and China Investment Corporation (CIC), Dr. Penn is ready to use his experiences and skills to hel

12、p more investors to achieve their financial goals. Dr. Penns strong track record has proven his ability of maintaining a positive return under downside market environments. In 2008, at the worst moments of the financial crisis, many top-tier investment companies suffered unprecedented huge losses. A

13、t that time, Dr. Penn was managing a $40 billion SAFE portfolio in New York. Thanks to Dr. Penns exceptional knowledge, experience, and accurate judgment, the portfolio achieved a more than 10% positive return in 2008. www.EmpireCDr. Penn and Prof. Chen, his advisorRoy Penn (Peng Junming)CIO, Empire Capital Management Senior Economist, Xinhua News AgencySenior Fellow, Center for China Foreign Strategy, Renmin University of ChinaFormer CIC and SAFE official with around 9 years global market experience.Prof. Chen XuemingChief Geologist , Empire Capital Management Professor