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Tuesday, 19th May 2009 (1765 views)

Increased gold buying by China is dominating the Australian mining industry, a new report has claimed.

According to Companies and Markets, Chinese companies are purchasing stakes in Australian assets as "foreign investment rules are liberal and encourage inward investment".

A number of approaches from Chinese businesses for Australian assets are being considered by the government, including a AU$2.6 billion (£1.3 billion) bid for Oz Minerals by China Minmetals.

The Australia Mining Report for the second quarter of 2009 also revealed that the country remains a "world leader" in the industry and is the third-largest producer of gold behind China and South Africa.

Some of the biggest names in the global mining sector operate in Australia and Companies and Markets predicted that "the election of a more business-friendly liberal government" that took place in September 2008 will benefit the industry.

Meanwhile, John Burbank, founder of Californian global hedge fund Passport Capital, recently forecast that China will purchase higher levels of the precious metal in the future, as its gold/gross domestic product percentage is currently relatively low at around 0.8 per cent, Manual of Ideas reported.

 

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