China Expands Overseas Mining Control

China is centralizing its global mining strategy by mobilizing state-linked companies to take larger ownership stakes in foreign mines, according to officials.

In April, a dedicated overseas bureau was created to oversee investments by central state-owned enterprises, with several government agencies and policy banks involved in steering overseas mining deals.

Later in July, a mining investment vehicle was formed to coordinate overseas deals, offering guidance on compliance, risk management, and market conditions for Chinese firms.

Chinese firms have invested heavily in overseas mining for two decades, focusing on regions avoided by Western miners, such as Tajikistan and the Democratic Republic of Congo.

Chinese mineral acquisitions abroad reached $8.8 billion in the first three quarters of this year, the highest annual total since at least 2018, according to a Rhodium Group report.

Acquisitions have mainly targeted minerals China lacks domestically, including lithium, nickel, cobalt, and gold, according to analysts.

China has restricted exports of seven medium and heavy rare earths since last year, requiring exporters to obtain licenses, affecting countries like Japan.

Japan's yttrium supply, used in semiconductors and displays, has been severely impacted, with exports to Japan dropping to 4,000 kilograms in September from 51,000 kilograms a year earlier.

The price of yttrium oxide outside China reportedly surged to about $1,150 per kilogram, compared with $9 per kilogram domestically, according to customs data.