Following the success of the Mines and Money conference and exhibition in Hong Kong in 2010, its new edition was held on 22 to 25 March 2011, gathering more than 2,000 guests, speakers, exhibitors and industry representatives. According to the organizers, Mines and Money is a key event in Asia to establish contacts and find partners for engineering and investment activities in the mining industry.
As Hong Kong is developing into a key listing and fund raising centre in Asia for miners, the Mines and Money conference is an important annual forum to discuss mining companies’ capital market strategies in Asia, Commodity Online says.
Great interest towards the conference this year was also due to the recently introduced new listing rules for mining companies at the Hong Kong Stock Exchange (HKEx), which were designed to attract this industry to Hong Kong by providing a number of advantages, aligning its rules with global standards and providing investors with relevant and reliable information. HKEx held a master-class at Mines and Money, which presented a detailed procedure and the benefits of listing in Hong Kong for companies operating in this sector.
It is noteworthy that during the conference its authoritative participants made quite a number of loud statements, reviewed below.
Several speakers at Mines and Money confirmed the reports that Chinese natural-resource investors were targeting smaller companies in their efforts to satisfy the country’s demand for metals and minerals, according to Mining Journal.
Opening the second day of the conference, the chairman of China Mining United Fund (CMU), Zhi Zheng, said that his fund wants to be actively involved with its target companies, and usually seeks a majority control. Although a private mining fund (the first in China, being formed less than two years ago), CMU’s strategy is still linked to the government’s commodity requirements.
Several speakers noted that despite the huge amounts involved, China’s SOEs had not been very successful in delivering overseas natural resources for the country. And, when they did succeed, they were paying very high prices.
Dickson Hall of HDI Mining (part of the Hunter Dickinson group) spoke of the increased interest from Chinese investors in his group’s early-stage projects. He noted that despite the impressive liquidity and loyalty of these investors, they have limited experience of the junior sector, and there are still considerable cultural differences.
The conference also discussed the much awaited IPO of Mongolian state-owned Erdenes Tavan Tolgoi (developing the Tavan Tolgoi Coal Deposit) to be held in late 2011 or the first quarter of 2012. The chief executive officer of the company told Reuters on the sidelines of the Mines and Money conference in Hong Kong that bankers estimate it to be in a range of $1.5-5 billion. The listing venue may be announced in June, but meanwhile, according to the company’s CEO Enebish Baasangombo, there are ongoing consultations with banks and stock exchanges in Hong Kong and London, which are to bring in a decision where it will be more expedient for this state-owned company to launch its IPO.
And so it was last week in Hong Kong where Ivanhoe Mine's executive chairman Robert Friedland told the Mines and Money conference that the earthquake and tsunami that devastated north-east Japan was "insanely bullish for copper". Friedland, quoted by the Sydney Morning Herald, said the "orgy" of reconstruction – currently estimated to cost more than $US300 billion – meant that copper remained the "cutest girl at the dinner".
Uranium mining company Uran Limited presented a document containing new data on uranium and manganese development for discussion at the conference. On March 28, its shares traded at the Australian Stock Exchange went up in price by 26%. Since the company denies spreading any essential information that could affect investor sentiments, the rise of its stocks is attributed to the discussions held at Mines and Money.
During the event, it was not once noted that due to increased competition between American, Canadian and Chinese investors into natural resources and due to higher liquidity generated by market recovery there are no problems to raise funds for good projects.
In 2012, Mines and Money will once again be held in Hong Kong on 20-23 March. According to the organizers, over 60 companies are already reserving exhibition stands for next year’s event.
Dasha Platonova, Editor of the Rough&Polished Asian Bureau in Shanghai
