Industry Trend Analysis - Chinese Deal Confirms Growing Presence In Mexico - JAN 2015

The recent joint agreement between China and Mexico establishing an USD2.4bn fund to invest in energy, infrastructure, and mining projects further confirms our expectation that China will continue investing in Latin American mineral resources. The deal is in line with our previously-stated expectation that China's push for resource security will spur more overseas mining deals in the coming years ( see both 'China's Outbound Mining Investment: Digging To Continue', March 12 and 'China Overseas Mining: Evolving Funding Trends & Implications,' September 1). Indeed, China will remain reliant on imports of copper, gold, and iron ore due to the shortfall in domestic production, encouraging both state-owned and private miners to make international investments. Given Mexico's significant untapped resources of these metals, as well as zinc and lead which are widely used in industrial applications, the country presents another strong foothold in the Americas for China and will compliment mining investments in countries including Peru and Canada.

Industry Gains To Continue
Mexico - Mining Industry Value & Growth

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